WFC - Wells Fargo: Keep Holding This Dividend Machine

2024-05-21 15:02:43 ET

Summary

• Wells Fargo stock has returned over 50% since our initial 'Buy' rating, outperforming the S&P 500 by a wide margin.
• The bank's return profile remains strong, with enough earnings power to back 7%+ combined annual capital returns in the form of buybacks and dividends.
• With a healthy balance sheet, improving control infrastructure, and trading at a fair price, it's a compelling package.
• We reiterate our 'Buy' rating on WFC.

Last September, we wrote an article about Wells Fargo & Company ( WFC ) titled: " Wells Fargo Has The Makings Of A Cheap, Safe Dividend Monster ", where we talked at length about the company's sound financial footing, attractive valuation, and consistent cash flow profile.

We argued that the stock could be a solid capital returns play for income-oriented folks that want to boost portfolio yield, or those seeking to add some exposure to the financial sector on the back of improving net interest margins....

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