Here's What You Need to Know About Wells Fargo Slashing Its Dividend

Last week, the Federal Reserve announced that it would be restricting dividend payments for big banks after conducting the 2020 version of its stress test. Not only will banks not be allowed to increase their dividends for the time being, but the payment of any dividend is dependent on a four-quarter average of each bank's net income.

Many of the big bank stocks have already announced plans to keep their dividends at current levels in the third quarter -- including Bank of America (NYSE: BAC), JPMorgan Chase (NYSE: JPM), and Citigroup (NYSE: C). However, the remaining member of the "big four" -- Wells Fargo (NYSE: WFC) -- didn't exactly give income investors good news.

Image source: Wells Fargo.

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Source Fool.com