JPM vs WFC: Dividend Yield, Growth & Safety Comparison
Jpmorgan Chase & Co (JPM) and Wells Fargo & Company/Mn (WFC) are both in the Financials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — JPM at 1.82% and WFC at 1.85%. For dividend growth, WFC leads with a 5-year CAGR of 35.8% versus JPM's 18.6%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | JPM | WFC |
|---|
| Dividend Yield | 1.82% | 1.85% |
| Annual Dividend | $5.80 | $1.70 |
| 5-Year CAGR | 18.6% | 35.8% |
| Payout Ratio | 29% | 27% |
| Consecutive Years | 0 | 0 |
| Price | $301.96 | $86.53 |
Yield Comparison
Wells Fargo & Company/Mn (WFC) currently yields 1.85%, which is modest for the broader market. Jpmorgan Chase & Co (JPM) yields a nearly identical 1.82%. In dollar terms, WFC pays $1.70/share annually versus JPM's $5.80/share.
Dividend Growth
Over the past five years, WFC has grown its dividend at a 35.8% CAGR compared to JPM's 18.6%. JPM: Dividend growth is accelerating — the 3-year CAGR of 34.9% exceeds the 5-year rate of 18.6% and the 10-year rate of 16.5%. 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
JPM's dividend safety is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.5x. 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. Both have similar payout ratios — JPM at 29% and WFC at 27%.
Income Comparison
A $10,000 investment in WFC generates approximately $185/year in dividend income, compared to $182/year from JPM — a difference of $3/year. At $100,000, that gap widens to $30/year.
Verdict
Frequently Asked Questions
Which has a higher dividend yield, JPM or WFC?
Wells Fargo & Company/Mn (WFC) has a higher dividend yield of 1.85% compared to Jpmorgan Chase & Co (JPM) at 1.82%.
Is JPM 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 Jpmorgan Chase & Co's 18.6%.
Which is safer for dividend income, JPM or WFC?
Jpmorgan Chase & Co's dividend safety is rated "Safe" while Wells Fargo & Company/Mn is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.5x. 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 JPM vs WFC generate?
A $10,000 investment in JPM generates approximately $182/year in dividends, while the same amount in WFC generates about $185/year.
Which has a lower payout ratio, JPM or WFC?
Wells Fargo & Company/Mn has a lower payout ratio of 27% compared to Jpmorgan Chase & Co's 29%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
JPM vs WFC: which is better for retirement income?
It depends on your priorities. WFC for dividend growth. Many retirement investors hold both for diversification.
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