C vs WFC: Dividend Yield, Growth & Safety Comparison
Citigroup Inc (C) and Wells Fargo & Company/Mn (WFC) are both in the Financials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — C at 1.90% and WFC at 1.85%. For dividend growth, WFC leads with a 5-year CAGR of 35.8% versus C's 11.0%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | C | WFC |
|---|
| Dividend Yield | 1.90% | 1.85% |
| Annual Dividend | $2.32 | $1.70 |
| 5-Year CAGR | 11.0% | 35.8% |
| Payout Ratio | 33% | 27% |
| Consecutive Years | 0 | 0 |
| Price | $110.67 | $86.53 |
Yield Comparison
Citigroup Inc (C) currently yields 1.90%, which is modest for the broader market. Wells Fargo & Company/Mn (WFC) yields a nearly identical 1.85%. In dollar terms, C pays $2.32/share annually versus WFC's $1.70/share.
Dividend Growth
Over the past five years, WFC has grown its dividend at a 35.8% CAGR compared to C's 11.0%. C: Dividend growth is accelerating — the 3-year CAGR of 21.6% exceeds the 5-year rate of 11.0% and the 10-year rate of 22.6%. WFC: Dividend growth is slowing — the 3-year CAGR of 30.4% trails the 5-year rate of 35.8% and the 10-year rate of 4.5%.
Dividend Safety
C's dividend safety is rated "Safe." The payout ratio of 33% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.0x. WFC's dividend safety is rated "Safe." The payout ratio of 27% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.7x. WFC's payout ratio of 27% is more conservative than C's 33%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in C generates approximately $190/year in dividend income, compared to $185/year from WFC — a difference of $5/year. At $100,000, that gap widens to $50/year.
Verdict
- Best for growth: WFC
- Best for safety: WFC
Frequently Asked Questions
Which has a higher dividend yield, C or WFC?
Citigroup Inc (C) has a higher dividend yield of 1.90% compared to Wells Fargo & Company/Mn (WFC) at 1.85%.
Is C or WFC a better dividend growth stock?
Wells Fargo & Company/Mn has the stronger dividend growth with a 5-year CAGR of 35.8%, compared to Citigroup Inc's 11.0%.
Which is safer for dividend income, C or WFC?
Citigroup Inc's dividend safety is rated "Safe" while Wells Fargo & Company/Mn is rated "Safe." The payout ratio of 33% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.0x. The payout ratio of 27% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.7x.
How much income does $10,000 in C vs WFC generate?
A $10,000 investment in C generates approximately $190/year in dividends, while the same amount in WFC generates about $185/year.
Which has a lower payout ratio, C or WFC?
Wells Fargo & Company/Mn has a lower payout ratio of 27% compared to Citigroup Inc's 33%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
C vs WFC: which is better for retirement income?
It depends on your priorities. WFC for dividend growth, WFC for safety. Many retirement investors hold both for diversification.
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