2024-02-03 11:40:00 ET
Summary
- Wells Fargo's Q4 results were disappointing due to special assessments and severance package allocations, but adjusted EPS would have been closer to $1.30 per share.
- Net interest income slightly decreased during the quarter, while non-interest income remained stable and non-interest expenses increased.
- Despite non-recurring items, the preferred dividend is well covered, and capital ratios remain strong. One issue of preferred shares offer a yield of approximately 6.2%.
Introduction
As I recently initiated a long position in certain issues of preferred shares of Wells Fargo ( WFC ), I now need to keep track of the banking giant’s financial results to make sure the preferred dividends are safe. As all preferred shares that have been issued are non-cumulative in nature (which means the bank can in theory skip a preferred dividend and doesn’t have to make up for it), I need to watch these preferred shares more closely than others. Although all banks continued to make their preferred dividend payments even during the COVID pandemic, I want to keep close tabs to ensure I can immediately act if problems would arise....
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For further details see:
Wells Fargo: A 6.2% Preferred Dividend Yield While Waiting For Decreasing Rates