Wells Fargo Series DD Vs. AA Pfds, With The Latter A Buy

Retired Investor Investing Group Follow Summary Wells Fargo & Company preferred Series AA is rated Buy for its attractive 6.9% yield and low risk profile. Both Series DD and Series AA are now callable, but current pricing indicates low call risk for either issue. WFC's preferred dividend safety is underpinned by a 23x net income-to-dividend ratio and 11x par coverage by common equity. With price declines since the last review, both yields are up 70-80bps since the start of 2026. Yields on WFC preferreds are competitive with peers, but investors anticipating a Fed rate hike may wish to delay new coupon-based purchases. Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More » Noah Sauve/iStock Editorial via Getty Images Introduction Wells Fargo & Company ( WFC ) is one of the largest banks in the United States, with branches across the country. While Wells Fargo has six preferred stocks to pick from, for my prior This article was written by Retired Investor 9.42K Followers Follow Retired Investor has been investing since the 1980s and has a background in data analysis and pension fund management. He writes articles to help others prepare for retirement by investing in CEFs, ETFs, BDCs, and REITs. He is a long only investor and shares strategies for trading options with a focus on cash-secured-puts. He is a contributing author to the investing group iREIT®+HOYA CapitalThe group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%.Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.