Wells Fargo: My Next Dividend Stock Purchase

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About: Wells Fargo & Company (WFC)
by: Kody's Dividends
This article is exclusive for subscribers.
Kody's Dividends
Dividend investing, dividend growth investing, long-term horizon
Summary

Having raised its dividend for 9 consecutive years, Wells Fargo is positioned to become a Dividend Contender in 2020.

Wells Fargo has announced that Charlie Scharf will assume the position of CEO, beginning on October 21, which I believe is encouraging news for the company moving forward.

Despite the risks to Wells Fargo, I believe the company's strong balance sheet and solid operating fundamentals will be able to help the company largely avoid those risks.

Adding to the case for an investment in Wells Fargo is the fact that I estimate shares of the company are trading at an 8% discount to fair value.

Between the 4.0% yield, 5-6% earnings growth, and 0.9% annual valuation multiple expansion, it's likely that shares of Wells Fargo will provide 9.9-10.9% annual total returns over the next decade.

While I have been interested in the theoretical concepts of investing for close to a decade at this point, I'm still quite new to investing itself.

Image Source: Personal Capital

After all, I just started