Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, July 3, 2020

Article Excerpt

WELLS FARGO & CO., $25.34, New York symbol WFC, remains our #1 Income Buy for 2020. The bank last raised its quarterly dividend with the September 2019 payment. Investors now receive $0.51 a share, up 13.3% from $0.45. The new annual rate of $2.04 offers you a high 8.1% yield. The U.S. Federal Reserve recently announced the results of its latest “stress test.” It measures how federally regulated financial firms would cope with a jump in unemployment, falling stock prices and other unfavourable developments. Due to the economic damage caused by the COVID-19 pandemic, Wells Fargo will hold its dividend steady for the 2020 third quarter, but will cut it with the fourth quarter payment. The bank will announce the new dividend within the next two weeks. Although Wells Fargo remains well capitalized and has plenty of liquidity, the dividend cut will make it easier for the bank to stay above the Fed’s minimum capital level. That’s particularly important as the bank, like its competitors,…

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