USB vs WFC: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | USB | WFC |
|---|
| Dividend Yield | 3.37% | 1.85% |
| Annual Dividend | $2.04 | $1.70 |
| 5-Year CAGR | 3.8% | 35.8% |
| Payout Ratio | 44% | 27% |
| Consecutive Years | 15 | 0 |
| Price | $57.63 | $86.53 |
Yield Comparison
Us Bancorp De (USB) currently yields 3.37%, which is solid for the broader market. That's 1.52% more than Wells Fargo & Company/Mn (WFC), which yields 1.85%. In dollar terms, USB pays $2.04/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 USB's 3.8%. 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's dividend safety is rated "Safe." The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x. 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 USB's 44%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in USB generates approximately $337/year in dividend income, compared to $185/year from WFC — a difference of $152/year. At $100,000, that gap widens to $1520/year.
Verdict
- Best for income: USB
- Best for growth: WFC
- Best for safety: WFC
Frequently Asked Questions
Which has a higher dividend yield, USB or WFC?
Us Bancorp De (USB) has a higher dividend yield of 3.37% compared to Wells Fargo & Company/Mn (WFC) at 1.85%.
Is USB 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 Us Bancorp De's 3.8%.
Which is safer for dividend income, USB or WFC?
Us Bancorp De's dividend safety is rated "Safe" while Wells Fargo & Company/Mn is rated "Safe." The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x. 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 USB vs WFC generate?
A $10,000 investment in USB generates approximately $337/year in dividends, while the same amount in WFC generates about $185/year.
Is USB or WFC a Dividend Aristocrat?
Us Bancorp De is a Dividend Contender with 15 consecutive years of increases. Wells Fargo & Company/Mn does not currently qualify for aristocrat status.
Which has a lower payout ratio, USB or WFC?
Wells Fargo & Company/Mn has a lower payout ratio of 27% compared to Us Bancorp De's 44%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
USB vs WFC: which is better for retirement income?
It depends on your priorities. USB for current income, WFC for dividend growth, WFC for safety. Many retirement investors hold both for diversification.
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