Wells Fargo: What A Dividend Doubling Looks Like (WFC, BRK-B)

Wells Fargo & Co. (NYSE: WFC) has announced that the Federal Reserve did not object to its capital return plan for its shareholders.  The first quarter dividend is effectively more than doubling as it is adding on a $0.12 payment to its $0.10 per share quarterly dividend.

With this being one of Warren Buffett’s favorite bank and a key holding of Berkshire Hathaway Inc. (NYSE: BRK-A), this is going to be a good payday for Mr. Buffett.  The shares closed up 5.8% at $33.33 at a new 52-week high today with a $175 billion market value..

Wells Fargo was trading at only a 1.5% dividend yield before today’s hike.  We do not have a formal size of the buyback, but here is what it said: “In addition to the increased dividend rate, the Company’s capital plan allows for a higher level of common share repurchase activity in 2012 versus 2011.”