I decided to open my Roth IRA with Fidelity just to keep everything together for now.
And the first purchase I made was for 25 shares of Wells Fargo (WFC). At the current dividend payout of $0.48 / yr and my purchase price of $25 / share my YOC is 1.90%. Wells Fargo to me is currently trading at a premium to some of the other financials but I feel that they are one of the safest bets among the big banks. The financials have been hit really bad and I feel that given my long-term outlook it is a great opportunity to get in selectively. I would have liked the price to be lower but wouldn't we all. They slashed their annual dividend down to $0.20 / share during the financial crisis but have already had a special dividend earlier this year and raised it by 140% since. I think they will be raising their dividend fairly quickly and within 2 years will be back to the pre-financial crisis levels of $1.36 / share. That will bring my YOC to 5.37% in a short amount of time. For a big bank as solid and conservative as Wells Fargo this seemed like a great opportunity for the long-term.