Wells Fargo: The Stress Tests and Dividends

Last week, the Federal Reserve reported that 17 of the nation's 18 largest banks passed this year's round of stress tests. Among those making the grade was Wells Fargo . The question this week is whether the Fed will allow Wells Fargo to return more capital to shareholders by means of a higher dividend or share buyback program. In the video below, Motley Fool contributor John Maxfield discusses why he thinks the chances of this are good.

Wells Fargo's dedication to solid, conservative banking helped it vastly outperform its peers during the financial meltdown. Today, Wells is the same great bank as ever, but with its stock trading at a premium to the rest of the industry, is there still room to buy, or is it time to cash in your gains? To help figure out whether Wells Fargo is a buy today, I invite you to download our premium research report from one of The Motley Fool's top banking analysts. Click here now for instant access to this in-depth take on Wells Fargo.

The article Wells Fargo: The Stress Tests and Dividends originally appeared on Fool.com.

John Maxfield has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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