When it comes to tracking the trading activity of member of Congress, frequent purchases of the same stocks could be an area to watch. In the case of Sen. Mitch McConnell (R-Ky.) the frequent purchases of one stock might have a more boring reason why.
McConnell Buys More Wells Fargo
A recent disclosure from McConnell shows the purchase of $1,000 to $15,000 in Wells Fargo & Co (NYSE:WFC) shares on Dec. 1, according to the Benzinga Government Trades page.
This marks the fourth time McConnell has disclosed buying Wells Fargo shares in 2025. Here are the other dates of purchase:
- March 3
- June 1
- September 1
In fact, Wells Fargo is the only stock McConnell has reported buying in each of the last three years. McConnell has disclosed buying shares of Wells Fargo each quarter for multiple years in a row, according to data from Quiver Quantitative.
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Why The Frequent Purchases?
While Wells Fargo may be a top financial stock, McConnell is disclosing buying more shares for a more specific reason than conviction in the company.
The disclosures come from his wife’s trading history. McConnell’s wife Elaine Chao owned between $500,000 and $1 million in Wells Fargo shares as of 2020, according to the Courier Journal.
The stock is now part of a dividend reinvestment plan that sees more shares purchased each quarter using the proceeds from dividends. In 2020, the couple was generating $15,000 to $30,000 in annual dividends from Wells Fargo.
Wells Fargo shares currently have a dividend yield of 1.9%. McConnell and his wife are turning that dividend yield into more shares in the company, a strategy used by some investors to build their positions and make sure their dividends go towards investments instead of taking them out.
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© Matt Stone/Courier Journal / USA TODAY NETWORK via Imagn Images
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