Some of the reasons I hold Wells Fargo
A few points from a WFC SWOT following the recent earnings report:
- This quarter's net income continues a string of increases dating to 2010's first quarter.
- Passing the stress test allowed for a significant increase in its dividend, which is now up to a respectable 2.7%.
- Non-interest expenses are projected to fall by more than $1 billion this year as the Wachovia integration wraps up and cost reductions take hold.
- Financial troubles may push European banks to sell off choice assets to raise capital. For example, Wells Fargo expects to close the acquisition of BNP Paribas' North American energy lending business this month.
A few more, along with some weaknesses and threats, are in the article. And I didn't even fall back on 'Buffett owns it.'
Disclosure: Long WFC.