Wells Fargo & Company (WFC) Dividends

WFC Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. Regarding Wells Fargo & Company, the dividend discount model StockNews created for the company implies a negative return of 63.24%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Wells Fargo & Company are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, Wells Fargo & Company's expected return of -63.24% is higher than just 14.98% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Wells Fargo & Company bears a discount rate, according to our calculations, lower than just 14.98% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for WFC than it is for just 14.59% of other equities in the Financial Services sector that also issue dividends.
• In terms of who is growing the amount of dividends they return to shareholders, Wells Fargo & Company has been increasing its dividends at a faster rate than 6.3% of US-listed dividend-issuing stocks we observed.

WFC Dividends vs. Peers