Don't Bank on More Dividend Boosts

Wells Fargo(WFC Quote) made a bold move in a shaky market by boosting its dividend by 10% Wednesday, but observers say few banks will follow suit amid a still-stressed housing and credit environment.

Wells Fargo shares surged more than 30% Wednesday, after the San Francisco-based bank declared a quarterly common stock dividend of 34 cents a share, up from 31 cents a share. Wells' second-quarter profit of $1.75 billion, or 53 cents a share, beat earnings estimates by 3 cents share, despite a 23% drop from a year ago.

The company's dividend increase and better-than-expected earnings boosted the wider financial sector Wednesday. The NYSE Financial Sector Index shot up 8.1% to close at 5,998.41. ...