This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Wells Fargo Is Boring. That's Fantastic

Stocks in this article: C BAC JPM PB DDS WFC

Wells Fargo simply avoids stupid. It focuses its energy on making good mortgages, on credit cards, on banking services that people use. It takes lots of deposits and makes loans.

Wells grew its mortgage portfolio rapidly from 2009 to 2012, with its market share topping out at nearly 34% in the middle of 2012. But as the housing market has heated up Wells has retreated, laying-off mortgage bankers and selling off some servicing rights

Right now the bank sees better prospects in credit cards. It recently signed a deal to fund, issue and service Dillards' (DDS) private label credit cards and has quietly become the nation's eighth-leading issuer.

Part of the reason for Wells' prosperity is that while its bigger brethren were struggling during the 2008 crisis with acquisitions like Countrywide Finance, Merrill Lynch, Washington Mutual and Bear Stearns, Wells Fargo's only big acquisition that year was Wachovia, which it bought without government help.

The price of Wells' shares plunged to a low near $12 at the start of 2009, and the dividend was cut to 5 cents per share. Still, the dividend remained intact, and within a few months of the low the price of shares was back above $28.

Since then, the shares' rise has been relatively steady, to their present level of almost $50. The dividend has risen 600% to its present level of 30 cents per share.

It's pretty boring. Most investors couldn't pick CEO Stumpf out of a lineup.

But who wants their banker to be a rock star? Wouldn't you prefer they just make you money? I would.

At the time of publication the author owned shares of WFC, BAC and PB but held no position in any of the other stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs