Helped by news the Fed has approved a dividend hike,Wells
) is trading near levels last seen in October 2008.
The banking giant gained 5% last week in convincing turnover
as it received that OK, then it eased back 1% on Monday.
The stock's chart shows a cup-with-handle pattern with a 35.56
buy point, as
this column pointed out back on Feb. 11
Wells Fargo struggled to advance beyond 35.56 in late
February, but its advance is now gaining steam.
The stock closed 6% past that level Monday, putting it just
outside a proper buying range for
Now that Wells Fargo has the Fed's OK, the San Francisco-based
bank expects to raise its quarterly dividend to 30 cents a share
for this year's second quarter, up from the current level of 25
cents. Its board still needs to approve the hike at its April
The move will boost Wells Fargo's annualized yield to about
3.2%, up from its current level of around 2.6%.
The bank said it also got approval to buy back more stock this
year than it did last year, but it didn't give details on the
size of its repurchase program.
CEO John Stumpf said in a news release that the bank has
managed to step up its dividend and buyback, thanks to its
diversified business model.
The Federal Reserve announced late Thursday that it had OK'd
the capital plans for Wells Fargo and 13 other big banks.
The central bank also required two banks,JP Morgan Chase (
) andGoldman Sachs (
), to refile by Sept. 30, and it nixed outright plans from
) and government-controlled Ally Financial.