Relevant:
- Silver Wheaton Announces Dividend Triples in Current Quarter Based on New Dividend Policy Linked to Operating Cash Flows
- Wells Fargo Sham Revealed
- B. of A. needs more than $80 billion: FBR
- UBS to Pay Lower Dividend as Cash Replaced by Stock
- Warren Buffet - ‘Wells Fargo to Experience Unusually Large Losses’ & BofA May Cut Dividend
2009-03-06 — businesswire.com
Wells Fargo & Company (NYSE:WFC) announced today that its Board of Directors will reduce the quarterly common stock dividend from $.34 to $.05 per share. The next dividend is expected to be declared in April 2009. This reduction will enable the Company to retain an additional $5 billion in common equity each year.
This is all as we've predicted. Wells' own toxic/nonperforming assets, plus those it has acquired from Wachovia, are draining it of cash. Now it has cut the dividend almost completely (as it should) to try to preserve cash. We predict things will continue getting worse -- much, much worse for Wells. Its common equity is more than swamped by its impaired assets -- we predict eventual collapse or at least massive capital injections which almost completely dilute existing shareholders.
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Comments:
MakingIt at 22:56 2009-03-06 said:
Good that they want to pay Tarp back as soon as available. Permalinkadd a comment | go to forum thread
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