Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Wells Fargo (WFC) have what it takes?
Wells Fargo is no longer a penalty-box bank, and credit is stable, capital is strong, and the asset cap is finally lifted, unlocking growth potential. The bank delivers solid earnings, aggressive buybacks, and improving efficiency, yet trades at a discount to peers, creating a compelling value opportunity. Shareholder returns are robust, with a sustainable 8%+ yield through dividends and buybacks, supported by excess capital and liquidity.
In the most recent trading session, Wells Fargo (WFC) closed at $73.15, indicating a +1.09% shift from the previous trading day.
Wells Fargo's preferred shares now offer a 6.4% yield, making the risk/reward ratio even more attractive amid higher interest rates. The bank only needs about 6% of net profit to cover preferred dividends, ensuring strong coverage and safety for preferred shareholders. Series Z preferred shares trade at a discount, boosting yield and offering potential capital gains if interest rates decline in the future.
[00:00:04] Doug McIntyre: Lee, I thought Wells Fargo would be in prison.
Wells Fargo (WFC) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
In the most recent trading session, Wells Fargo (WFC) closed at $75.45, indicating a -1.32% shift from the previous trading day.
Wells Fargo reportedly expects consumer loan growth in the United States to remain flat or potentially decrease through the end of the year.
Wells Fargo & Company (NYSE:WFC ) Morgan Stanley US Financials, Payments & CRE Conference June 10, 2025 9:00 AM ET Company Participants Michael P. Santomassimo - Senior EVP & CFO Conference Call Participants Betsy Lynn Graseck - Morgan Stanley, Research Division Betsy Lynn Graseck I'm just going to read a Morgan Stanley disclosure.
Wells Fargo's asset cap has been lifted after 7 years, removing a major growth restriction and opening new business opportunities. Despite consistent earnings beats, market sentiment and stock price lagged due to the asset cap, not fundamental issues. The stock remains undervalued, trading at a 26% discount to sector peers, with strong bottom-line performance despite revenue constraints.
Wells Fargo (NYSE: WFC) stock has increased by 3% over the past week and is up nearly 9% year-to-date. The recent uptick follows the announcement from the U.S. Federal Reserve last week stating that Wells Fargo will no longer be bound by the $1.95 trillion asset cap enforced on the bank's operations due to its prolonged sales practices scandal.
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