Wells Fargo's board has raised the bank's quarterly dividend by 11%, to 50 cents from 45 cents, following through on a pledge made last month after the Federal Reserve's annual stress test.

The new payout, equal to $2.00 a year, represents an annual yield of about 2.3% based on Tuesday's midday trading price of $86.81, up from 2.08%.

Wells Fargo and a host of its peers all passed the Fed's recent annual stress tests, and several responded with stock buybacks and dividend boosts.

The San Francisco bank said the increased dividend is payable Sept. 1 to shareholders of record Aug. 7.