Like most companies, Wells Fargo issues trust preferred, preferred and depository shares of its stock through the capital issuance business. Most of these are listed on the New York Stock Exchange, but some are set up as private transactions. The challenge is understanding the terms of the preferred securities that best suit your needs. The following will guide you through the purchase process and provide relevant links to the prospectus supplements needed to make a fully informed decision.
Compare the different types of preferred stock available. Wells Fargo Capital has six offerings. They include Non-Cumulative Convertibles (CUSIP: 949746804), Non-Cumulative Perpetual (two offerings; CUSIP: 949746PM7 and 949746879), Wells Fargo Preferred Funding Corp (CUSIP: 92977V206), Fixed Rate Cumulative Perpetual (No CUSIP) and Dividend Equalization Preferred (CUSIP: 949746887).
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Compare callable dates. A call date refers to the date the company can "call back" or pay you back for the securities. Convertibles have a call option embedded as a feature and the fixed rate cumulative securities are also callable at any time. All others have call dates ranging from March 15, 2018, to Dec. 31, 2022.
Compare coupons. The coupon is the amount you will receive in interest for buying the bond. Coupons are both fixed or floating, and range from 5 percent to 9 percent or more depending on the associated index.
Compare coupon payment dates. Payment dates can range from twice a year to four times a year. Choose an offering that best fits your income needs.
Compare final maturities. All of Wells Fargo's preferred stock are perpetual, which means they have no final maturity date.
Make a purchase through your broker, online broker or contact Wells Fargo Capital directly. You will need the CUSIP number provided in Step 1. This number contains all the information the broker or Wells Fargo representative needs. You will also need to stipulate the number of shares you wish to purchase. Divide the amount you would like to invest by the current price of the stock (see Resources).