By Christina Rexrode
Wells Fargo & Co. increased its target payout ratio, a
measure tied to the amount of dividends and share buybacks the bank
is able to return to shareholders, to a range of 55% to 75%, up
from 50% to 65% before.
The San Francisco bank disclosed the change in slides it
released as part of its "Investor Day" presentation.
The net payout ratio reflects the amount of value being returned
to shareholders through dividends and buybacks as a percent of the
firm's profits. The bank had set its earlier target two years
ago.
In March, Wells Fargo got permission from the Federal Reserve to
raise its dividend to 35 cents from 30 cents per quarter, and to
expand its share-buyback program. The bank's net payout ratio was
34% in 2013, up from 14% in 2011. The bank left other goals
unchanged, including for return on equity and efficiency ratio.
Write to Christina Rexrode at cristina.rexrode@wsj.com
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