Note 24: Earnings and Dividends Per Common Share

Table 24.1 shows earnings per common share and diluted earnings per common share and reconciles the numerator and denominator of both earnings per common share calculations. See Note 1 (Summary of Significant Accounting Policies) for discussion of private share repurchases, and the Consolidated Statement of Changes in Equity and Note 20 (Common Stock and Stock Plans) for information about stock and options activity and terms and conditions of warrants.

Table 24.1: Earnings Per Common Share Calculations



		Year ended December 31,
(in millions, except per share amounts)		2018		2017	2016
Wells Fargo net income		$	22,393	22,183	21,938
Less: Preferred stock dividends and other (1)		1,704		1,629	1,565
Wells Fargo net income applicable to common stock (numerator)		$	20,689	20,554	20,373
Earnings per common share
Average common shares outstanding (denominator)		4,799.7		4,964.6	5,052.8
Per share		$	4.31	4.14	4.03
Diluted earnings per common share
Average common shares outstanding		4,799.7		4,964.6	5,052.8
Add:	Stock options	8.0		17.1	18.9
	Restricted share rights	26.3		24.7	25.9
	Warrants	4.4		10.9	10.7
Diluted average common shares outstanding (denominator)		4,838.4		5,017.3	5,108.3
Per share		$	4.28	4.10	3.99


(1)	The year ended December 31, 2018, includes $155 million as a result of eliminating the discount on our Series J Preferred Stock, which was redeemed on September 17, 2018.

Table 24.2 presents the outstanding options to purchase shares of common stock that were anti-dilutive (the exercise price was higher than the weighted-average market price), and therefore not included in the calculation of diluted earnings per common share.

Table 24.2: Outstanding Anti-Dilutive Options



	Weighted-average shares
	Year ended December 31,
(in millions)	2018	2017	2016
Options	0.3	1.9	3.2

Table 24.3 presents dividends declared per common share.

Table 24.3: Dividends Declared Per Common Share



	Year ended December 31,
	2018		2017	2016
Per common share	$	1.640	1.540	1.515