Stock Buy $WFC

I noted in my May 21 post when I bought a very small stake in JPM that these are the BEST times to buy the greatest businesses in the world since 2008. In order to put some money to work I bought the largest position ever in my portfolio into Wells Fargo & Co. (WFC). I have never seen banking industry trading at these low valuations especially already beaten down WFC offers a rare and once in a life time opportunistic valuation. The dividend yield is ridiculously highest I have ever seen for an essential/too big to fail business. At current stock market valuation, WFC is trading at 2012 price levels! Also, WFC is one of the biggest positions for Warren Buffett who has always noted how huge the moat is in this industry. Even current CEO Charles Scharf bought 173,000 shares at $28.69, which equates investment of $4,963,370 in his own managed company.

Company Overview: 

Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California. It is an international banking and financial services company that operates in all 50 states including 36 countries with approximately 8,700 locations and 12,500 ATMs. The company provides products and services to individuals, small businesses, and large businesses. It operates primarily in four major categories: Community Banking, Wealth and Investment Management, Consumer Lending, and Wholesale Banking. The company is one of the four biggest banks in United States and has one of the most valuable banking brands in the world.

Statistics: 

  • P/E: 9.7
  • Dividend Yield: 7.4%
  • 10Yr Dividend Growth Rate: 14.7%
  • 5Yr Dividend Growth Rate: 7.3%
  • 3Yr Dividend Growth Rate: 8.2%
  • Payout Ratio: 68.0%
  • Consecutive Years of Dividend Raises: 9
  • Dividend Payout: Quarterly
  • Debt/Equity Ratio: 1.80x

I purchased 700 shares of Wells Fargo & Co. (WFC) for the price of $27.52 per share for a total investment of $19,264.00 adding around $1,428 to my annual dividend income.

This is the 3rd time I am initiating a stock acquisition this year. This transaction is my additional purchase of WFC shares into the portfolio. As of today, I now hold a total of 721.31 shares of the company. Additionally, WFC ownership stake represents to be around 13.9% of my total portfolio value.

Conclusion:

The Portfolio “The Dividend Machine” has been updated with link ➡ here.

Thank you for reading & have a great day!

6 Comments

  1. OthalaFehu on June 15, 2020 at 08:01

    I held WFC for a long time, but every time I turn around it seems like they are bad acting. If they would just cool it for awhile, I might come back

    • DividendVet on June 15, 2020 at 13:09

      Any business will encounter internal or external enemies at the gates. Their moats or competitive advantages is what saves great monopolistic businesses. Sure WFC has had their scandals, but lets not forget the best time to invest in words best businesses is when they are on the operating table, either with business risks or economic risks.

      To me, this is forever hold. The choice is yours to own or not to own any stock/business, no one else’s.

      All the best!

  2. DivHut on June 14, 2020 at 17:45

    Wow… putting that dry powder to good use and investing. I always love seeing members of our DGI community continue to buy stocks even though things are very uncertain these days. That’s real conviction in WFC. Keep up the good work.

    • DividendVet on June 14, 2020 at 21:47

      Thanks DivHut! Cash is trash, it needs to be put somewhere… No better place, no better business than oligopolistic banking sector. This is a long term type of move.

      Take care.

  3. desidividend on June 14, 2020 at 17:36

    Wow thats quite a nice buy and big position , I have a small position close 1 contract.Been adding myself to average down.

    • DividendVet on June 14, 2020 at 21:56

      Thanks, it is even to me, but my left over dry powder is much bigger than that and if opportunities arise like these, they need to be capitalized upon. Plus with this “plandemic”, this is no financial banking issue, plenty of helicopter money for everyone from the Feds.

      Thanks for your feedback.

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