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Analysts Blast Wells Fargo (WFC) For Dividend Increase

wfc3.jpgWells Fargo reported a solid Q2 this morning, handing the financial sector its first victory in months. But analysts aren't popping the Dom Perignon. Instead, they're piling on WFC for raising its dividend.

The move was perceived as boastful and potentially reckless given the deteriorating capital position of the financial industry. MarketBeat:

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What raised analysts’ hackles was the firm’s decision to increase its dividend by 10%, sort of a boastful move at a time when many financial-services institutions are hoarding cash. Citigroup analysts say “we don’t view this as prudent move in front of an increasingly difficult environment,” while Goldman Sachs analysts added that the move was “hard to explain” at a time when “capital is extremely scarce, new business and M&A opportunities are abundant, and Wells Fargo’s stock is already yielding 6%.”

You know cash is tight if analysts start yelling at you for returning more money to shareholders.

See Also: Wells Fargo Reports Solid Q2 Beat
Desperate Banks Find Clever Way To Hide Distres

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