5 Best Bank Stocks for Dividends

2. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 99
Total Value of Hedge Fund Holdings: $8.74 Billion
Dividend Yield as of May 7: 0.87%

Ranking 2nd in our list of 10 best bank stocks for dividends is Wells Fargo & Company (NYSE:WFC). The California-based financial services company Wells Fargo & Company was founded in 1852 and has grown its customer base to over 70 million customers. 

Wells Fargo & Company (NYSE:WFC) has a market cap of $192.3 billion. Wells Fargo & Company revenue in 2020 came in at $80.3 billion. Shares of WFC jumped 83% over the past twelve months. In March, Morgan Stanley maintained an Overweight rating on Wells Fargo & Company (NYSE:WFC) and raised the price target to $47.

There were 99 hedge funds that reported owning stakes in Wells Fargo & Company at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $8.74 billion.

Davis Funds mentioned that though banks in general have been harmed by the recession and have sustained credit losses, Wells Fargo has also been harmed by operating errors in its Q4 2020 investor letter:

“Detractors to performance relative to the index include financial services holdings such as Wells Fargo. While banks in general have suffered due to the recession and experienced credit losses, Wells Fargo also suffered from operational missteps. It is our expectation, however, that our bank holdings in general will benefit from stronger economic growth as the pandemic recedes; and we believe Wells Fargo in particular, will, over time, lower their costs and successfully grow their businesses.”