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April 23, 2013 – Comments (5)

Wells Fargo announced a raise in the quarterly dividend to 30 cents/share from 25.  That's a 20% hike and is up 36% from a year ago.  At today's closing price, the yield going forward is just a bit under 3-1/4%.

Disclosure:  Long WFC and just added a few stagecoach tickets last Thursday.

5 Comments – Post Your Own

#1) On April 24, 2013 at 12:39 AM, awallejr (81.59) wrote:

My problem with the large banks is I suspect Dodd-Franks will curtail their longterm earnings.  WFC is the largest mortgage lender atm.  Personally I prefer the BDCs mainly because they have more freedom in lending and they pay a far greater dividend.

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#2) On April 24, 2013 at 2:56 AM, valuemoneygreen (82.36) wrote:

Amen to the raise!!!!! I own WFC. It makes up 100% of my portfulio.

Disclosure: Long WFC.........WAY LONG!

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#3) On April 24, 2013 at 3:04 AM, valuemoneygreen (82.36) wrote:

I just want to hear about a huge buyback at these low prices so WFC does something with all its cash coming in. It is dumb to retain all those earnings. O well it is well capitalized as I wait for the stock price to go up. I get a nice dividend while I wait and if WFC buys back shares my stake will increase without even purchasing another share. Read my pitch and all the comments on my CAPS page for the reasons I like WFC. The average person will learn something about investing if they do!

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#4) On April 24, 2013 at 3:08 AM, valuemoneygreen (82.36) wrote:

One more thing. The dividend is still low. WFC will end up paying a higher % of their earnings out as a dividend. O how I love all the money coming in to WFC. Record earnings year after year. LOVE IT. So will my retirement account.

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#5) On April 24, 2013 at 5:17 PM, rd80 (98.35) wrote:

@awallejr - I agree Dodd-Frank will be a drag on earnings, but IMHO, that's in the stock price.  Haven't looked at BDCs much since I sold PSEC some time ago, guess I'm overdue to do some research there.

@value... - Good point on the dividend still being low.  I think there are a couple more years of pretty hefty raises to go, then the big banks' dividend streams will start to look kind of like regulated utilities - relatively high yields and small raises every year or so..  There is a buyback in the capital plan that was approved by the Fed; all the press release said about the amount is that it would be an increase over the 2012 buyback program.

Thanks for the comments.

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