Federal Reserve Gives Wells Fargo & Co (WFC) Approval to Hike Dividend: JPMorgan Chase & Co. (JPM), Bank of America Corp (BAC)

Source: Comprehensive Capital Analysis and Review 2013: Assessment Framework and Results.

The biggest remaining question concerns the bank’s plans for share buybacks. Unlike the dividend increase, which Wells Fargo & Co (NYSE:WFC) clearly spelled out, it was much more coy about the size and timing of buybacks, saying only that the bank’s proposal also included an “increase in common stock repurchase activity for 2013 compared with 2012.” Last year, the bank’s board approved the repurchase of 200 million shares of common stock. Consequently, it seems safe to assume that the same amount, if not more, will be approved this year, barring some unforeseen intervening catastrophe. But lest you get too excited about this, it’s important to note that these buybacks are principally conducted to “cover shares repurchased to meet team member benefit plan requirements.” In other words, don’t expect the outstanding share count to go down anytime soon.

Following on the heels of a stellar year, Wells Fargo’s performance in the Fed-administered tests over the last two weeks serves as evidence that not infrequently, the best bank investments are also the most boring.

The article Federal Reserve Gives Wells Fargo Approval to Hike Dividend originally appeared on Fool.com and is written by John Maxfield

John Maxfield owns shares of Bank of America. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase, and Wells Fargo.

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