Wells Fargo Non-Cumulative Perpetual Class A Preferred Stock, Series N About To Put More Money In Your Pocket

On 8/27/14, Wells Fargo & Co.'s Non-Cumulative Perpetual Class A Preferred Stock, Series N (WFC.PRN) will trade ex-dividend, for its quarterly dividend of $0.325, payable on 9/15/14. As a percentage of WFC.PRN's recent share price of $23.27, this dividend works out to approximately 1.40%, so look for shares of WFC.PRN to trade 1.40% lower — all else being equal — when WFC.PRN shares open for trading on 8/27/14. On an annualized basis, the current yield is approximately 5.60%, which compares to an average yield of 5.69% in the "Financial" preferred stock category, according to Preferred Stock Channel.

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As of last close, WFC.PRN was trading at a 7.12% discount to its liquidation preference amount, versus the average premium of 0.80% in the "Financial" category. Investors should keep in mind that the shares are not cumulative, meaning that in the event of a missed payment, the company does not have to pay the balance of missed dividends to preferred shareholders before resuming a common dividend.The chart below shows the one year performance of WFC.PRN shares, versus WFC:

Performance Comparison Chart

Below is a dividend history chart for WFC.PRN, showing historical dividends prior to the most recent $0.325 on Wells Fargo & Co.'s Non-Cumulative Perpetual Class A Preferred Stock, Series N :

WFC.PRN+Dividend+History+Chart

According to the ETF Finder at ETF Channel, Wells Fargo & Co. ( WFC) makes up 11.71% of the iShares U.S. Financial Services ETF (IYG) which is trading relatively unchanged on the day Monday.

In Monday trading, Wells Fargo & Co.'s Non-Cumulative Perpetual Class A Preferred Stock, Series N ( WFC.PRN) is currently up about 0.2% on the day, while the common shares ( WFC) are trading flat.

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