7.16.2008

WFC: Beats street and increases dividend

Wells Fargo (WFC) Tops Q2 EPS by 3c

Excerpt:

Wells Fargo (NYSE: WFC) reports Q2 EPS of $0.53, versus the consensus of $0.50. Revenues came in at $11.46 billion, versus the consensus of $10.65 billion.


Wells Fargo Increases Dividend 10 Percent - 21st Consecutive Year of Increased Dividend

Excerpt:

Wells Fargo & Company (NYSE:WFC) today announced a quarterly common stock dividend of 34 cents per share, up 10 percent from the previous dividend of 31 cents per share – the 21st consecutive year Wells Fargo has increased its dividend. The dividend is payable September 1, 2008, to stockholders of record on August 8, 2008. The Company has approximately 3.3 billion shares outstanding.

“This increase, which reflects the Company’s performance and our confidence in its long-term growth, is possible because of our time-tested vision and values, diverse business model and our talented team that collaborates so well as One Wells Fargo to satisfy all our customers’ financial needs,” said Chief Financial Officer Howard Atkins. “Wells Fargo is one of only a few financial institutions that have continued to increase its annual dividend, which now exceeds $4.5 billion.”

Wells Fargo dividends have increased at a 15 percent compound annual growth rate since 1988. Among all U.S. companies in the last year, Wells Fargo paid the 14th largest total dividend. With dividends reinvested, Wells Fargo stock has increased 67 percent in value since June 1998 – a compound annual growth rate of 5.3 percent – compared to -0.76 percent for the Keefe Bruyette Woods bank index and 2.9 percent for the S&P 500® stock index.



Wells Fargo Profit Tops Estimates as Insurance Revenue Gains

Excerpt:

Wells Fargo, the second-biggest U.S. mortgage lender, has said it avoided subprime loans, which caused more than 100 companies to close, be sold or halt operations since the beginning of 2007. Bank of America Corp. became the biggest home lender this month when it completed a rescue of Countrywide by purchasing the Calabasas-based company.

Last month, analyst Vivek Juneja reduced his 2008 and 2009 profit estimates at Wells Fargo because of the likelihood of additional loan loss reserves.

While profit is declining amid the mortgage crisis, Wells Fargo is diversifying by bolstering its insurance and credit cards units. In May, Wells Fargo bought Flatiron Credit Co., which finances insurance premiums, and the bank has been building its credit-card business.

Those areas provide ``the basis for continued revenue growth as the mortgage banking segment faces a tough market in 2008,'' wrote Standard & Poor's credit analyst Victoria Wagner, in a report last month. ``Wells Fargo's franchise is well managed and well-positioned.''




Comment: Will WFC go up today?

1 comment:

  1. And oil is way down (well, relatively speaking), too. That is only good news. But just as fast as it goes down, it could also jump on the next day, or the next hour for that matter. I hope that the powers that be realize that the high prices of oil will do nothing but send us into recession and possibly even worldwide depression if it actually goes high enough.

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