A new research report published by Markit Group predicts that many of the nation's largest banks are on the verge of raising their dividends.
Among others, it expects both Bank of America and Citigroup to raise their quarterly payouts by as much as 400%. "Expectations for the remainder are more pedestrian, thanks to Fed guidelines discouraging [payout ratios] greater than 30%," reads the report.
Where does Wells Fargo (NYSE:WFC) fall on the spectrum? In the following video, Motley Fool contributor John Maxfield answers this question by giving his take on whether the California-based bank will indeed hike its dividend next month.
John Maxfield owns shares of Bank of America. The Motley Fool recommends Bank of America and Wells Fargo and owns shares of Bank of America, Citigroup, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.