Wells Fargo: Adding Duration To My Portfolio With A 6.3% Yielding Preferred


  • Reviewing Wells Fargo & Company’s Series L preferred shares, focusing on preferred dividend coverage and financial performance.
  • Despite the decrease in net income, preferred dividends remain well-covered with a payout ratio of 6.6%.
  • Series L preferred shares offer 6.3% yield, low probability of forced conversion, making it a preferred choice for adding duration to a portfolio.

Wells Fargo"s San Francisco headquarters, Ca, USA

JHVEPhoto/iStock Editorial via Getty Images


As mentioned in some of my previous articles, I’m trying to add some duration to my fixed income portfolio. Preferred shares are an important part of my income-focused portfolio, but I am keeping close tabs

Analyst’s Disclosure: I/we have a beneficial long position in the shares of WFC.PR.L either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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