USB vs WFC: Dividend Comparison
Dividend data as of
Us Bancorp De (USB) and Wells Fargo & Company/Mn (WFC) are both in the Financials sector, making them natural rivals for dividend investors. USB offers a significantly higher 3.37% yield compared to WFC's 1.85%, a gap of 1.52%. For dividend growth, WFC leads with a 5-year CAGR of 35.8% versus USB's 3.8%. Both stocks carry a "Safe" dividend safety rating. USB is a Dividend Contender with 15 years of consecutive increases.
Verdict
Yield Analysis
USB yields 1.52% more than WFC. In dollar terms, USB pays $2.04/share vs WFC's $1.70/share annually.
Dividend Growth
USB: Dividend growth is slowing — the 3-year CAGR of 2.8% trails the 5-year rate of 3.8% and the 10-year rate of 7.4%.
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
USB: The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
WFC: The payout ratio of 27% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.7x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in USB vs WFC today?
At $57.63 per share, $10,000 buys about 173.5 shares of Us Bancorp De (USB). Each share pays $2.04 per year in dividends, so the position starts out generating roughly $354 per year — about $30 a month.
At $86.53 per share, $10,000 buys about 115.6 shares of Wells Fargo & Company/Mn (WFC). Each share pays $1.70 per year in dividends, so the position starts out generating roughly $196 per year — about $16 a month.
USB is the larger income stream from day one: $158 per year more on the same $10,000 invested.
What could $10,000 of USB or WFC income look like in 10 years?
Us Bancorp De (USB) has raised its dividend about 3.8% a year over the past five years. If that pace held, the $337 per year that $10,000 generates today at the current 3.37% yield would reach $487 per year by 2036 — a 4.9% yield on the original cost.
Wells Fargo & Company/Mn (WFC) has raised its dividend about 35.8% a year over the past five years. If that pace held, the $185 per year that $10,000 generates today at the current 1.85% yield would reach $3,942 per year by 2036 — a 39.4% yield on the original cost.
On those trailing rates, WFC pays more in 2036: $3,942 versus $487 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would WFC's dividend growth overtake USB's higher yield?
Wells Fargo & Company/Mn (WFC) yields less today (1.85% vs 3.37%) but has grown its dividend faster — 35.8% vs 3.8% a year over the past five years. If both trends continued, a $10,000 position in WFC would start out-earning the same position in USB around 2029 (roughly 3 years from now), paying about $463 per year at the crossover. Before that point, USB pays more each year; after it, the gap compounds in WFC's favor.
Can USB and WFC afford their dividends?
Us Bancorp De (USB) earns $4.62 per share against $2.04 paid out in dividends — 2.3x coverage (a 44% payout ratio).
Wells Fargo & Company/Mn (WFC) earns $6.26 per share against $1.70 paid out in dividends — 3.7x coverage (a 27% payout ratio).
WFC's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for USB if earnings weaken.
Which fits an early-retirement income portfolio better, USB or WFC?
For income you need right now, Us Bancorp De (USB) leads: $100,000 invested today pays about $281 a month at the current 3.37% yield, versus $154 a month from Wells Fargo & Company/Mn (WFC) at 1.85%.
With a decade or more before the income is needed, WFC's faster dividend growth (35.8% vs 3.8% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: USB has raised its dividend 15 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $679/yr in USB vs $4,735/yr in WFC by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
Track USB and WFC in your portfolio
See your real income from both — forward projections, yield on cost, and dividend safety signals. Sync your brokerage free for 30 days, or track holdings manually on the free plan.
Choosing a tracker? See the best dividend trackers compared.
Frequently Asked Questions
Related Resources
Individual Stock Analysis
Dividend Tools
Track Your Dividends
More Comparisons
This tool is for educational and informational purposes only and does not constitute investment, financial, tax, or legal advice. Consult a licensed professional before making investment decisions.
Past performance does not guarantee future results. All projections are hypothetical estimates based on user-provided inputs and may differ materially from actual outcomes.
By using this tool you agree to our Terms of Service and Privacy Policy.