We provide the latest news
from the world of economics and financeAs of April 29, Wells Fargo (NYSE: WFC) stock is up by 25% over the past five years. But keep in mind that it also pays a substantial dividend, so it is important to take that into account as well.
Including dividends, and assuming that you reinvest them, Wells Fargo has produced a 44.3% total return over the past five years. So if you had invested $1,000 in Wells Fargo stock five years ago, your investment would be worth $1,443 today.
On the other hand, the S&P 500 benchmark index produced an 89% total return over the same period. And the overall financial sector, as measured by the Financial Sector SPDR ETF (NYSEMKT: XLF), has returned 63% over the past five years. So although Wells Fargo wouldn't have lost you money, its performance hasn't measured up to the overall stock market or to its financial sector peers.
There are a few big reasons why Wells Fargo has lagged behind other banks and the S&P 500. Just to name a couple of the biggest:
So, Wells Fargo has underperformed the market and its peers over the past five years. But if its asset cap gets lifted or if interest rates start to fall, Wells Fargo could have a lot to gain.
Before you buy stock in Wells Fargo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Wells Fargo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of April 22, 2024
Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Matt Frankel has positions in Wells Fargo. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.