The market needs to brace itself for more dividend cuts. Investors need to tread carefully investing in retail REITs, banks, or energy. If you’re investing in the spaces, it’s likely that dividends aren’t your top priority. A multi-year turnaround plan sounds plausible.
Wells Fargo Cutting Its Dividend this Month
It’s expected that Wells Fargo (NYSE:WFC) will partially cut its dividend in Q3 to comply with the Federal Reserve’s stress tests. It will announce the new dividend when it reports quarterly results on July 14.
In the last great recession triggered by a financial crisis about 11 years ago, the stock traded as low as a P/E of 5 based on normalized earnings. That would imply a buy target of about $18 — if you’re looking for a multi-year turnaround play.Read More