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

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.