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  5. WFC: would you recommend this to an income investor. [Wall Financial Corporation]
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Investment Q&A

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Q: would you recommend this to an income investor. Is the dividend safe?
Asked by Donna on June 13, 2023
5i Research Answer:

WFC does not pay a dividend that regularly and only once a year. It paid $3 in March, $2 in July 2019, $1 in October 2018, 50c in July 2017, 60c in July 2016, 60c in June 2014 and 30c in March 2013. EPS is doing well but we would not assume the $3 will be ongoing. On a per share basis, even with recent growth earnings are still below the level of 2017. It has no analysts following it and insiders control over 70% making trading thin. Debt is high, though lower than in 2020. As a real estate company it is of course sensitive to rates and the economy. We would not consider that great for an income investor due to its small size, the high valuation and weak trading. It is also expensive on valuation. We would just give it an OK rating and would not be that interested at this time. We certainly would not buy on the assumption of a continuing 15% yield following a 49% YTD gain.