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Saturday, July 16, 2016

Recent Buy: Wells Fargo & Company

24 June 2016: Bought 54 shares of WFC at $46.51 per share.

Wells Fargo & Company (NYSE:WFC) is a diversified, community-based financial services company with $1.8 trillion in assets. Founded in 1852 and headquartered in San Francisco, the company provides banking, insurance, investments, mortgage, and consumer and commercial finance through 8,800 locations, 13,000 ATMs, the internet, and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy.

WFC is a Dividend Challenger with a 6-year streak of dividend increases and a 10-year dividend growth rate of 4%. The company cut its dividend in March 2009 to preserve capital in the midst of the Great Recession, and resumed dividend increases in 2011. WFC pays quarterly dividends of 38¢ per share in the months of March, June, September and December.

With this buy, DivGro's projected annual dividend income increases by $82.08.

To see my analysis of WFC and the reasons I bought shares, please read this article at Seeking Alpha.

Please feel free to leave comments on this article either at Seeking Alpha or here, on my blog. I'll do my best to respond to each comment as quickly as possible.


  1. Nice buy Ferdi. WFC is the only US bank that I own and plan on buying right now.

    1. Glad to be a fellow shareholder (with you AND Warren Buffet!) :-)


  2. Interesting purchase, FerdiS. I owned WFC for a while but decided to sell during my latest purge. Overall there is lot to like -- but I do see that the management is relaxing its lending standard a lot, which was concerning. Having said that, do I think the company is going to suffer badly -- no, I think its still a good long term hold.

    Best wishes

    1. I noticed your selling spree, but can't recall that WFC was one of them. Anyway, I think you're right regarding the lending standard being lower. The company, like other big banks, has significant exposure to oil & gas loans which have junk status. They've made some provisions for it, though. The question is, is it enough? Only time will tell... if crude oil recovers above $60, WFC will do great. If it drops back to $30, I think I'll get a chance to buy more shares at a much lower cost basis! Long term, though, WFC should be fine, I believe.

  3. Great buy FerdiS. I like the comprehensiveness of your article. Thanks for sharing.

    I bought some shares a little bit ago around $48.50 but if the price continues down I will certainly buy some more. Im looking to hold them for the long term and am willing to pay for value!

    1. You're welcome, More Dividends! I, too, will buy more if the price drops. I think $45 will trigger another buy for me. I think the share price will be influenced by what crude oil does. Looking forward to seein how this one pans out!

  4. Thanks for sharing Ferdis. Really like this bank and I would add more US stocks but the US is expensive right now for us Canadians.
    Keep it up bud, you're doing awesome! Cheers to our journey.

    1. WFC is trading below fair value and paying >3%, which is attractive to me. Sorry about the exchange rate working against you. I have the opposite problem buying Canadian banks. The dividends suck when converted to US$. Thats one reason I sold TD recently.

      Take care and thanks for commenting!


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