Wells Fargo Boosts Dividend

Wells Fargo(WFC Quote) boosted its quarterly dividend by 11% late Tuesday as the big bank seeks to shore up the swooning financial sector.

The San Francisco bank raised its quarterly payout to 31 cents from 28 cents, payable Sept. 1 to shareholders of record Aug. 10. The dividend announcement comes on a day when financial stocks accelerated their recent decline following more bad news in the mortgage sector.

Countrywide Financial(CFC Quote), the largest independent mortgage company, warned that rising delinquencies and defaults were spreading beyond the subprime industry into some so-called prime mortgage categories such as home equity loans.

The Calabasas, Calif.-based lender's CEO, Angelo Mozilo, said he doesn't see a housing recovery until 2009. The comments sent Countrywide shares tumbling 10% and led to steep declines in shares of other banks and lenders.

Wells' stock dropped 92 cents, or 2.6%, to $33.93 in regular trading, though shares picked up 31 cents in late action.