Want to know what I think about WFC? Ok, fine:
2008: WFC lies about business, raises dividends, people buy.
2009: WFC lies about business, cuts dividend, people buy.
If we can just keep eliminating the stupid buyers, the market becomes efficient. I think.
- Former PM and current New Jersey gas station attendant.
It is sort of odd that Wells Fargo seems to defy the rules. True, they haven't been immune to the present downturn, but they seem to possess some kind of extra buoyancy that other financial firms are distinctly lacking. What? Warren who?
Although doing so was "very difficult," Chief Executive John Stumpf said Friday the move was "absolutely right for our company and our shareholders because it will further strengthen our ability to grow market share and to continue our long track record of profitable growth." A more-normal dividend will return "as soon as practical."
The move will also help the bank repay the Treasury "at the earliest practical date," Wells said, calling the need to service the dividend on the government investment "a significant cost to the company."
Wells Fargo Cuts Quarterly Dividend [The Wall Street Journal]