PNC vs WFC: Dividend Yield, Growth & Safety Comparison
Pnc Financial Services Group, Inc. (PNC) and Wells Fargo & Company/Mn (WFC) are both in the Financials sector, making them natural rivals for dividend investors. PNC edges ahead on yield at 2.75% versus WFC's 1.85%. For dividend growth, WFC leads with a 5-year CAGR of 35.8% versus PNC's 16.0%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | PNC | WFC |
|---|
| Dividend Yield | 2.75% | 1.85% |
| Annual Dividend | $6.60 | $1.70 |
| 5-Year CAGR | 16.0% | 35.8% |
| Payout Ratio | 40% | 27% |
| Consecutive Years | 0 | 0 |
| Price | $229.30 | $86.53 |
Yield Comparison
Pnc Financial Services Group, Inc. (PNC) currently yields 2.75%, which is solid for the broader market. That's 0.90% more than Wells Fargo & Company/Mn (WFC), which yields 1.85%. In dollar terms, PNC pays $6.60/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 PNC's 16.0%. PNC: Dividend growth is accelerating — the 3-year CAGR of 19.8% exceeds the 5-year rate of 16.0% and the 10-year rate of 17.0%. 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
PNC's dividend safety is rated "Safe." The payout ratio of 40% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.5x. 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. WFC's payout ratio of 27% is more conservative than PNC's 40%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PNC generates approximately $275/year in dividend income, compared to $185/year from WFC — a difference of $90/year. At $100,000, that gap widens to $900/year.
Verdict
- Best for income: PNC
- Best for growth: WFC
- Best for safety: WFC
Frequently Asked Questions
Which has a higher dividend yield, PNC or WFC?
Pnc Financial Services Group, Inc. (PNC) has a higher dividend yield of 2.75% compared to Wells Fargo & Company/Mn (WFC) at 1.85%.
Is PNC 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 Pnc Financial Services Group, Inc.'s 16.0%.
Which is safer for dividend income, PNC or WFC?
Pnc Financial Services Group, Inc.'s dividend safety is rated "Safe" while Wells Fargo & Company/Mn is rated "Safe." The payout ratio of 40% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.5x. 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 PNC vs WFC generate?
A $10,000 investment in PNC generates approximately $275/year in dividends, while the same amount in WFC generates about $185/year.
Which has a lower payout ratio, PNC or WFC?
Wells Fargo & Company/Mn has a lower payout ratio of 27% compared to Pnc Financial Services Group, Inc.'s 40%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PNC vs WFC: which is better for retirement income?
It depends on your priorities. PNC for current income, WFC for dividend growth, WFC for safety. Many retirement investors hold both for diversification.
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