2024-03-28 23:42:51 ET
Summary
- Wells Fargo has taken its share of hits over the years.
- It has paid out more than $11 billion to compensate customers for various harms they suffered at the bank's hands.
- The bank's reputation leads some to be wary of it.
- Nevertheless, the bank is profitable enough to pay the dividend on its 6.2%-yield preferred shares in perpetuity.
- In this article, I make the case that Wells' preferred shares are more enticing than its common stock.
Wells Fargo ( WFC ) is one of the most hated bank stocks in America. Having been fined more than $11 billion for consumer protection offences over the last decade, it has something of a shady reputation. In the 2010s, the bank was accused of “forcing” customers into products they didn’t want. The bank did not directly order employees to do this, but it encouraged high pressure sales tactics that incentivized the behavior....
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Wells Fargo's 6.2% Preferreds: An Oasis In The Desert