Wells Fargo (NYSE: WFC) is a money center bank based far away from the financial centers on the East Coast. Unlike money center banks such as Citigroup (NYSE: C) and Bank of America (NYSE: BAC), Wells Fargo did not collapse during The Great Recession. Like many other financial stocks, Wells Fargo has rebounded strongly, far outdistancing Bank of America, Citigroup, and others.
There is every reason to expect a strong performance for the future from Wells Fargo that should produce a rewarding total return.
That has certainly been the case for the last year of market action. Wells Fargo is up for the last week, quarter, six months, and year of market action. For 2014, Wells Fargo has risen by over 16 percent (chart below).
There is bullish trajectory predicted for earning per share for Wells Fargo.
Next year, earnings per share are expected to rise by 3.84 percent. For the next five years, earnings per share are projected to increase by 9.69 percent. That is a bullish trend for the future.
The dividend yield will add to the total return.
Income investors should like the 2.69 percent dividend yield of Wells Fargo. The average presently for a member of the Standard & Poors’ 500 Index (NYSE: SPY) is around 1.8 percent. In addition, Wells Fargo has a history of dividend growth. Long term shareholders get a raise every time that the amount of the dividend is increased.
Most important of all, Wells Fargo is considered to be one of the best managed banks!
Its profit margin is 46.20 percent. The profit margin for Citigroup is 14.50 percent. Bank of America has a profit margin of 13.10 percent. Many of the other margins and returns of Wells Fargo are just as compelling.
Based in Minneapolis, Wells Fargo proves that a bank does have to be located in an East Coast money center to turn in a superior performance!