+- Dividend Growth Forum (http://DividendGrowthForum.com)
+-- Forum: Dividend Growth Investing (http://DividendGrowthForum.com/forumdisplay.php?fid=15)
+--- Forum: Individual Dividend Growth Stocks (http://DividendGrowthForum.com/forumdisplay.php?fid=35)
+--- Thread: Buying WFC! (/showthread.php?tid=127)
Pages:
1
2
Buying WFC! - Kerim - 05-17-2013
Ok, so it is not exactly today’s trade, but a week ago (last Friday) I pulled the trigger to start a small position (100 shares) in Wells Fargo (WFC). As I’ve mentioned elsewhere, I am still solidly in the accumulation phase of my DG life, and WFC represents the 19th individual stock I own. I added it for several reasons. First, my portfolio is currently very light on financial/insurance stocks, so this buy adds some desired diversity. Second, after a fair amount of research and reading, I’ve become convinced that WFC is a top-of-class financial stock, in terms of both management, performance, and potential.
Most importantly, WFC scores very well on most of the criteria I consider in evaluating (you can read here all about how I evaluate dividend growth stocks). I locked in a respectable starting yield of 3.16 percent. WFC has a very solid 5 year average earnings growth over 20 percent (even including the tank from 2007 to 2008), and a sustainable payout ratio below 35 percent. P/E ratio is in the 10-11 range. The blotch on WFC’s record as a dividend growth stock was the dividend cut during the 2008-2009 financial crisis. This might disqualify the stock from the portfolio of some DG investors who apply strict (rigid) rules. I tend to agree with the authors who praise WFC’s management through the crisis, however, and the dividend growth since 2010 has been impressive. Here is a good, and exciting, recent article about WFC’s dividend prospects. For all of these reasons, I think that WFC is one of a rapidly shrinking pool of high-quality DG stocks that is not fully valued at today’s increasing prices.
With the commission, I got in at a per-share price of $38.02. Only time will tell how I do with this, but I’m feeling good about the buy.
RE: Buying WFC! - earthtodan - 07-12-2014
It looks like your purchase has worked out pretty well so far. I picked up my first 20 shares at $51.03 the other day after the earnings dip. The only reason I didn't pick up more is because I'm psychologically anchored to seeing it trade in the 40s.
RE: Buying WFC! - Robert_NL - 07-13-2014
I'm thinking of adding to my current position. My current cost base for WFC is $41.12, so adding to it will decrease my YOC but of course increase my income.
RE: Buying WFC! - rnsmth - 07-13-2014
I am underweight financials and, with the exception of GE have no US-based financials.
Three bank meltdowns since the 70's is enough for me. There was the savings and loans debacle, 2008 and another one I can't remember.
I do own a couple of Canadian banks, but will probably never own a US bank.
RE: Buying WFC! - EricL - 07-13-2014
WFC is the only bank I own, I think it will do quite well in the next few years.
RE: Buying WFC! - Roadmap2Retire - 07-22-2014
So confused at first seeing that you bought WFC at $38 - had to check that date
I really like WFC and would love to add some more. My cost basis is around $39. Im still debating about adding more now since its fairly valued in the current market. My portfolio is overweight in financials (thanks to REITs) and may add more elsewhere before I add more banks.
I own WFC and BNS.
RE: Buying WFC! - Forticus - 09-16-2016
After I calculated a buy price last night, and then saw it in the intra-day chart of yesterday.
What I am still puzzled about is the low and partly negative sales growth over recent years as well as the negative saw tooth pattern in FCF growth since 2006. In 2009 and 2012 FCF went up and after 2012 down only. Did I miss something, perhaps in due(er) dilligence?
RE: Buying WFC! - navyasw02 - 09-16-2016
(09-16-2016, 06:52 AM)Forticus Wrote: After I calculated a buy price last night, and then saw it in the intra-day chart of yesterday.
What I am still puzzled about is the low and partly negative sales growth over recent years as well as the negative saw tooth pattern in FCF growth since 2006. In 2009 and 2012 FCF went up and after 2012 down only. Did I miss something, perhaps in due(er) dilligence?
Recent $100M+ fine due to the recent fraudulent account scandal has hit the share price, but fundamentals remain the same.
RE: Buying WFC! - Rasec - 09-16-2016
A very nice post I read today on the topic: http://www.simplysafedividends.com/wells-fargo-wfc-account-fraud-dividend/
I'm happy to buy more as soon as it hits $42 as I am already fully loaded!
RE: Buying WFC! - crimsonghost747 - 02-09-2017
How is everyone feeling about WFC nowadays?
I jumped in around $45 or $46 with a couple of different buys during the "scandal". While I had been eyeing WFC for a long time, I'm not too confident in the US banking sector and those buys were maybe more because of the beaten down price. I saw value and I grabbed it... and at first I considered it to be a decent addition to my portfolio but now I'm starting to question that decision. US banks have a history of causing havoc once in a while and I certainly wasn't too pleased with the latest quarterly report.
I'm thinking about selling.
The cash would go into increasing existing positions in my portfolio, 5 others and CM.TO which is the only financial on the buy list for February. Even though it wasn't the original idea, getting out now would make this a pretty damn good trade and with the companies I'm adding I'd be looking at more dividend income as well as probably higher dividend growth rate too.
Is anyone else thinking of selling or is WFC still a hold forever stock for you guys?
RE: Buying WFC! - EricL - 02-09-2017
No plans to sell mine as I think rising interest rates, potentially lower corporate taxes and reduced regulations should all help the banks.
I'm not buying more, and I wouldn't be overweight or anything, but I don't see any red flags right now that would cause me to sell.
RE: Buying WFC! - ChadR - 02-09-2017
I agree with Eric. I own it and think with the decreased regulations, lower corporate taxes, and rising interest rates that should be coming, it is a keep holding stock. I won't be buying more, but I will keep DRIPing. It's a small position that I wouldn't let get too big.