Wells Fargo raises dividend...hmmmm

So Wells Fargo quarter came in better then expected, although down from last year and they go ahead and raise their dividend from .31 cents to .34 cents. I'm not at all convinced that this is a smart move. At a time when banks need to be reserving capital and shoring up their balance sheets, to increase a payout seems to be a strange way to flex your muscle as a strong financial. In addition, any bank that has adequate capital should be able to make a killer return for investors by providing loans at the extremely beneficial spreads that the negative interest rates are creating. At a time when loans need to be made (good loans that is), it's strange that a bank would be paying out to shareholders. I'll have to look into this more, but I don't like it one bit.