We Recently Purchased The Following:
Total Spent: $438.80; added $15.20 in forward dividends.
Wells Fargo & Company (WFC)
Purchased 10 shares of WFC on 10/3/2016 at $43.88Total Spent: $438.80; added $15.20 in forward dividends.
Our recent purchase of Wells Fargo & Company (WFC) is just the 4th stock purchase made in our family's dividend stocks portfolio since February. We also bought Apple Inc (AAPL), Gilead Sciences (GILD) and Flower Foods Inc (FLO), on June 24, 2016 and September 9, 2016, respectively. There is certainly a lot of selling going on lately throughout the DGI community so I guess our buying activity is a bit contrarian to the current trend. But for the record, even though we don't post our sells, we have took some money off the table this year. In fact, I will say we've probably done more selling than buying to date. And that is including the buying spree we had in January and February!
Here are a few reasons why we personally bought WFC stock: 1) WFC was trading at a 22.1% discount from its 52-week high of $56.34; 2) Nice yield above 3% at 3.3% 3) low payout ratio at 37% should allow WFC to continue to raise dividends for years to come; 4) WFC is a very large company with a market cap at 228 Billion.
Here are a few reasons why we personally bought WFC stock: 1) WFC was trading at a 22.1% discount from its 52-week high of $56.34; 2) Nice yield above 3% at 3.3% 3) low payout ratio at 37% should allow WFC to continue to raise dividends for years to come; 4) WFC is a very large company with a market cap at 228 Billion.
Company Description
From Google Finance:
“Wells Fargo & Company is a bank holding company. The Company is a financial services company, which offers banking, insurance, trust and investments, mortgage banking, investment banking, retail banking, brokerage, and consumer and commercial finance. It has three operating segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. Its Community Banking segment offers financial products and services for consumers and small businesses, including checking and savings accounts, credit and debit cards, and auto, student and small business lending. Its Wholesale Banking segment provides financial solutions to businesses across the United States and globally. Its Wealth and Investment Management segment provides a range of personalized wealth management, investment, and retirement products and services to clients across the United States-based businesses. It operates through over 8,700 locations and approximately 13,000 automated teller machines.”
With our recent purchase of Wells Fargo & Company (WFC), the estimated forward dividends for our family's dividend stocks portfolio grew another $15.20, putting our yearly dividends at approximately $3,304/year (excluding our Edwards Jones account) and $3,689/year (including our Edward Jones account).
Our family's dividend stocks portfolio may be found
by clicking on the link below:
We also maintain an extensive list of stock analysis
that can be access through the link below:
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HERE IS A QUICK FACT SHEET FOR THE STOCK I JUST PURCHASED:
P/E: 11
Payout Ratio: 37%
Dividend Yield: 3.3%
4 consecutive years of dividend increases
Last Ex-dividend date: 8/3/2016
Dividend Yield: 3.3%
4 consecutive years of dividend increases
Last Ex-dividend date: 8/3/2016
Next Ex-dividend date: approx. 11/3/2016
Have paid a dividend since: 1939 (77 years)
Pays a dividend 4 times a year
Market Cap: 228 Billion
52-week high: $56.34
52-week low: $43.55
Purchased Price: $43.55
Have paid a dividend since: 1939 (77 years)
Pays a dividend 4 times a year
Market Cap: 228 Billion
52-week high: $56.34
52-week low: $43.55
Purchased Price: $43.55
What are your thoughts on of recent purchase?
What are you buying?
Thats a good price to get in,i have been buying WFC and may average down.
ReplyDeleteWe bought shares earlier this year near $50 so this purchase lowered our cost basis. If it continues to dip below $40, we plan to buy more. Even if it doesn't, we think it is a great value in the low 40s.
DeleteAppreciate the feedback. Thanks for stopping by. AFFJ
You paid a very reasonable price for a company that will most likely be great again in a couple years. And as interest rates rise, so will their EPS. Good luck.
ReplyDeleteWe certainly believe and hope so. Profits should continue to grow as interest rates rise. It may not be overnight (which we are OK with), but we think WFC if a good long-term stock at current prices.
DeleteAppreciate the comment. Best wishes. AFFJ
Looks like many are taking advantage of the WFC dip. No doubt, near term it will be rough but I think way down the road this would have been a good buy. Yield and value are both looking good for this name. Thanks for sharing.
ReplyDeleteYes, it may take some time for the stock price to rebound but hoping to collect the 3% plus in dividends while we wait. Even better if WFC continues their streak of dividend increase as they have done the past four years. :)
DeleteThanks for stopping by and commenting Keith. AFFJ
Wow, what a perfect timing on stocking up on WFC. It's rarely dip below $50, not to mention getting it at $43.
ReplyDeleteEven the interest rate will not increase, but WFC's profit is still healthy. Dividend is amongst the highest in the banking sector.
Cheers!
We may be a bit biased as we do bank with Wells Fargo, but we think it is a good company that should be around for years to come. We think their future looks bright with a rising interest rate environment. Glad to be able to grab a few more shares in the low 40s.
DeleteThank you for the feedback. AFFJ
AFFJ -
ReplyDeleteNice purchase, so many eyes on this bank that's for sure. They aren't going anywhere, and the dividend is fairly safe. Congrats!
-Lanny
Thanks Lanny. As one of the largest banks with a market cap of 228 Billion, I have to agree with you that WFC is not going anywhere. :)
DeleteThanks for stopping by and for the kind words of support. AFFJ
Nice Buy. I think with the old CEO out, things can move forward and start a better outlook for the company now. I don't necesarily believe the CEO was the main problem, but investors are looking for a scapegoat and the CEO is typically the one that fills the role.
ReplyDeleteI have to agree with you Adam. A fresh start can sometimes be a good thing for companies. If nothing more, a new CEO should help with investors confidence as it appears many had blamed the old CEO. Who knows, if the next few quarters improve with the new CEO, it could help to bring some of the investors back.
DeleteAppreciate the comments. Best wishes. AFFJ
Thank you for very usefull information..
ReplyDeletewells fargo routing number san diego