Is Wells Fargo & Co (WFC) a Good Stock to Buy?

That being said, Citigroup Inc (NYSE:C) still offers just a token dividend payment of one cent per share quarterly. Moreover, Citigroup trades for a P/E multiple of 17 according to Yahoo Finance, a significantly higher valuation than both Wells Fargo & Co (NYSE:WFC) JPMorgan.

Bank on healthy returns going forward

SEC filings reveal that Warren Buffett’s Berkshire Hathaway purchased 18 million shares of Wells Fargo in the first quarter, bringing the total ownership stake to 458 million total shares. Clearly, the Oracle of Omaha believes in Wells Fargo’s future, and I’d tend to agree.

For that matter, I’d classify both Wells Fargo & Co (NYSE:WFC) and JPMorgan Chase & Co. (NYSE:JPM) as best-of-breed banking giants in the United States for their compelling dividend growth, attractive valuations, and excellent underlying operating performance. Of course, not all banks are created equal, and because of its token dividend and higher P/E multiple, investors would be wise to avoid Citigroup Inc (NYSE:C) and instead consider better-performing rivals Wells Fargo and JPMorgan Chase & Co. (NYSE:JPM).

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo & Co (NYSE:WFC). The Motley Fool owns shares of Citigroup Inc (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM)., and Wells Fargo.

The article Is Wells Fargo a Good Stock to Buy? originally appeared on Fool.com.

Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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