Topic: How To Invest

Dividend Advisor Hotline – Friday, June 28, 2019

Article Excerpt

WELLS FARGO & CO., $47.32, New York symbol WFC, is the third-largest U.S. bank by assets ($1.89 trillion as of March 31, 2019), after J.P. Morgan (No. 1) and Bank of America (No. 2). The bank passed the U.S. Federal Reserve’s latest stress test. It measures how financial firms would cope with a jump in unemployment, falling stock prices and other unfavourable developments. As a result, Wells Fargo plans to increase its quarterly dividend in the third quarter of 2019 by 13.3%, to $0.51 a share from $0.45. The new annual rate of $2.04 yields a high 4.3%. The bank also plans to buy back up to $23.1 billion of its shares by June 30, 2020. Those repurchases are equal to 11% of its market cap. Including this latest increase, Wells Fargo’s dividend has risen an average 7.8% annually over the past 5 years. Its TSI Dividend Sustainability Rating is Above Average. OUR RECOMMENDATION: Wells Fargo is a buy. Wells Fargo recent coverage: Hotline for…