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....
Read the full article on Seeking Alpha
For further details see:
Wells Fargo: Keep Holding This Dividend Machine