Background: Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. Wells Fargo set the bar for other banks in risk management. While many other banks experienced an implosion in book value during the housing crisis, Wells Fargo's risk controls ensured investors were protected.
52-Week Range: $27.08 to $36.60Price To Book: 1.3 Earnings Payout Percentage: 25% The company currently pays 88 cents per share in dividends for a yield of 2.6%. Dividends are lower from early 2009 but unlike many other financial institutions, dividends, albeit smaller, were not halted. Investors can count on the Federal Reserve to keep banks healthy until the economy turns around.
Having the Fed as your sugar daddy should not be discounted. It's the ultimate in privatization of profits and socialization of losses. Once the economy begins growing again (and it will), a river of profits along with dividend increases can be expected. Wells Fargo is nothing less than a heads-you-win, tails-you-break-even type of play. Stocks making money in good times and bad don't need analysts to convince you to buy them, but Wells Fargo has the backing of analysts, too: 21 of the 36 analysts covering the company give a buy recommendation. WFC PE Ratio TTM data by YCharts