Wells Fargo: Keep Holding This Dividend Machine


  • Wells Fargo stock has returned over 50% since our initial ‘Buy’ rating, outperforming the S&P 500 by a wide margin.
  • The bank’s return profile remains strong, with enough earnings power to back 7%+ combined annual capital returns in the form of buybacks and dividends.
  • With a healthy balance sheet, improving control infrastructure, and trading at a fair price, it’s a compelling package.
  • We reiterate our ‘Buy’ rating on WFC.

Peru, IN - March 2016: Wells Fargo Retail Bank II


Last September, we wrote an article about Wells Fargo & Company (NYSE:WFC) titled: “Wells Fargo Has The Makings Of A Cheap, Safe Dividend Monster“, where we talked at length about the company’s sound financial footing, attractive valuation, and

Analyst’s Disclosure: I/we have a beneficial long position in the shares of WFC 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.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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