Wells Fargo Boosts Dividend (Update2)

Updated from 9:54 a.m. EDT.

Wells Fargo(WFC Quote) surged 24% Wednesday morning after the big mortgage lender said it was increasing its dividend by 10% and posted better-than-expected second-quarter earnings results.

The San Francisco-based bank declared a quarterly common stock dividend of 34 cents a share, up from its previous dividend of 31 cents a share. The dividend increase overshadowed the company's 23% drop in quarterly profit from a year earlier, according to second quarter results released on Wednesday.

News of the dividend increase sent shares up $4.85 to $25.36 in recent trading, as investors breathed a sigh of relief amid a troubled banking environment. A dividend increase by any bank will be rare this earnings season, particularly as they look to shore up capital as loan losses mount. Other banks that have cut their dividend this year include Citigroup(C Quote), Washington Mutual(WM Quote) and National City(NCC Quote), among others. ...