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Wells Fargo & Company Message Board

  • mr.schnider mr.schnider Jan 31, 2013 2:24 PM Flag

    WFC Dividend down the road

    A couple weeks ago I glanced through the prospectus for Wells Fargo' warrants from the TARP.
    I am not a financial advisor, however it appears that in 2018 Wells warrants are exerciseable at $34
    The part I never saw until recently is that Wells Fargo' dividend, once it reaches $1.34, will start to impact the excise price.

    For example, if in 2017, the dividend is ten cents more than $1.34 then the excise price of $34 is lowered by that same ten cents.

    Dont quote me on the above, I am not sure if it is correct way understanding of the Warrants.
    However if it is true it can lead one to forcost a steady path of dividend increases toward $1.34 from the $1 we are now presently at. In other words an annual increase of $.06 in the dividend annually.

    Since dividend increases are a topic frequently written about in the press and by analysts, one would think if my understanding were true someone else would have mentioned it, which leads me to fear my cursory glance of the prospectus has led me to faulty thinking and is off base.

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