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Wells Fargo Stock: Raking In A 6.4% Preferred Dividend Yi...
The Investment Doctor · 2026-06-20 · via All Articles on Seeking Alpha

Summary

  • Wells Fargo Series L preferred shares offer a compelling 6.4% yield with minimal call risk due to high conversion thresholds.
  • WFC’s Q1 net income of $5.25B and a preferred dividend payout ratio near 5% ensure strong coverage for preferred shareholders.
  • The Series L preferreds are perpetual, non-cumulative, and only convertible if WFC common triples, making them attractive for long-term fixed income allocation.
  • I maintain a "buy" rating on both WFC common and Series L preferreds, favoring gradual accumulation for income-focused investors.
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San Francisco, CA, USA - July 26, 2023: A Wells Fargo Bank in downtown of San Francisco.

KairosDee/iStock Editorial via Getty Images

Introduction

You may have noticed in my recent articles that I have been focusing more often on fixed income securities as I think the current market circumstances are quite appealing for fixed income investors. While I of course still like to

Analyst’s Disclosure: I/we have a beneficial long position in the shares of WFC.PR.L either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I also have a long position in WFC's common stock.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.