| | Note 25: Earnings and Dividends Per Common Share |
Table 25.1 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 on share repurchases, and the Consolidated Statement of Changes in Equity and Note 21 (Common Stock and Stock Plans) for information about stock and options activity and terms and conditions of warrants.
Table 25.1: Earnings Per Common Share Calculations | | | | | | | | | | | | | | Year ended December 31, | | (in millions, except per share amounts) | 2019 |
| | 2018 |
| | 2017 |
| Wells Fargo net income | $ | 19,549 |
| | 22,393 |
| | 22,183 |
| Less: Preferred stock dividends and other (1) | 1,611 |
| | 1,704 |
| | 1,629 |
| Wells Fargo net income applicable to common stock (numerator) | $ | 17,938 |
| | 20,689 |
| | 20,554 |
| Earnings per common share | | | | | | Average common shares outstanding (denominator) | 4,393.1 |
| | 4,799.7 |
| | 4,964.6 |
| Per share | $ | 4.08 |
| | 4.31 |
| | 4.14 |
| Diluted earnings per common share | | | | | | Average common shares outstanding | 4,393.1 |
| | 4,799.7 |
| | 4,964.6 |
| Add: | Stock options (2) | 0.8 |
| | 8.0 |
| | 17.1 |
| | Restricted share rights (2) | 31.5 |
| | 26.3 |
| | 24.7 |
| | Warrants (2) | — |
| | 4.4 |
| | 10.9 |
| Diluted average common shares outstanding (denominator) | 4,425.4 |
| | 4,838.4 |
| | 5,017.3 |
| Per share | $ | 4.05 |
| | 4.28 |
| | 4.10 |
|
| | (1) | The years ended December 31, 2019 and December 31, 2018, includes $220 million and $155 million, respectively, as a result of eliminating the discount on our Series K and Series J Preferred Stock. The Series K Preferred Stock was partially redeemed on September 16, 2019, and the Series J Preferred stock was redeemed on September 17, 2018. |
| | (2) | Calculated using the treasury stock method. |
Table 25.2 presents the outstanding Convertible Preferred Stock, Series L, and options to purchase shares of common stock that were anti-dilutive and therefore not included in the calculation of diluted earnings per common share. Table 25.2: Outstanding Anti-Dilutive Securities | | | | | | | | | | | Weighted-average shares | | | Year ended December 31, | | (in millions) | 2019 |
| | 2018 |
| | 2017 |
| Convertible Preferred Stock, Series L (1) | 25.3 |
| | 25.3 |
| | 25.3 |
| Stock options (2) | — |
| | 0.3 |
| | 1.9 |
|
| | (1) | Calculated using the if-converted method. |
| | (2) | Calculated using the treasury stock method. |
Table 25.3 presents dividends declared per common share. Table 25.3: Dividends Declared Per Common Share | | | | | | | | | | | | Year ended December 31, | | | 2019 |
| | 2018 |
| | 2017 |
| Per common share | $ | 1.92 |
| | 1.64 |
| | 1.54 |
|
|