Analysts: BB&T isn't likely to need more government aid
Published: April 25, 2009
NEW YORK - BB&T Corp. was listed among six large financial institutions that are not likely to need more capital or federal-government aid to survive the banking crisis, according to a study released Thursday by analysts at KBW Inc.
However, they also joined the chorus of analysts projecting that BB&T will have to cut its dividend to meet its stated goal of paying back $3.1 billion in federal bailout money as soon as possible.
The KBW analysts conducted their own stress test on 19 financial institutions based on criteria similar to that being used by the U.S. Treasury. "We concluded that $1 trillion of capital would be needed industrywide,' the analysts said.
The analysts said that BB&T likely is waiting for the federal stress test to be completed before taking action on its dividend. BB&T is the largest bank in the country that has not reduced its dividend. It declared a 47-cent dividend for the second quarter.
THEY just won't be happy until BB&T cuts their dividend. It is like a jealous sister or brother, if I can't have it- you are not either!
When do you think the next run to $40 will take place, I believe a run is coming but when?
Long and Strong with BB&T.
The short-sellers and vultures just don't get it. They don't understand BB&T, the culture, the loyalty of the stock holders, the terrific management, sound business model, etc. I've given up trying to explain to these knuckleheads how BB&T cannot be lumped with the BOA's and Citis of the world. To do so is a dumb, short-sighted approach that will cost them money in the long run. If there is ANY financial to own, it's BB&T. I've owned it for a long time and continue to buy in this depressed market. Kelly King and his team rock.
otis...i agree with you...my family has owned BBT stock for 30+ yrs. and have considered it one of the most stable investments we own...i enjoy banking with the BBT & have been told that each branch has growth/profitability goals that must be reached. That said i believe BBT will be profitable to the extent they can continue the dividend....(shorties beware...you are betting against a "regional banking legend" that will adapt to any financial situation)...i am betting with my investment dollars the dividend continues and is paid from increased profits...GOOD LUCK TO ALL!!!!
Well said, Otis! You are right...you cannot possibly explain this to the shorts on this board. Most analysts don't even understand and just keep lumping BB&T with the other banks. It's best to just sit back and watch it as it unfolds.
-->When I voted my proxy shares I don't remember any mention of a dividend cut or increase for that matter...
I don't remember ever seeing whether to pay, cut or increase a dividend in the proxy of any of the stocks I've owned. Those decisions are left to the BOD to be decided on a quarterly basis.
Nor do they mention the amount of money plus bonuses the upper echelon receive compared to entry level employees or the amount paid plus bonuses to the members of the board. Remember these dollars are taken away from your dividend.
Share holders don't complain when mgt is making them money, but when they are losing us money why should they continue to get big salaries?
When I voted my proxy shares I don't remember any mention of a dividend cut or increase for that matter and it seems that's where in the past they put it out there to be approved by the share holders. Somebody please correct me if I'm wrong.