While we'd all like to see the dividend back at its previous level (or higher), and eventually that's likely to happen, I don't think BB&T can afford to pay more than the reduced dividend at this time. Their recent earnings do not justify anything above what they're currently paying. I think they're going to get some opportunities to absorb business from some of the smaller players out there as they fail, and that's a better long term use for their cash flow than paying out a bigger dividend. They're also likely going to have some issues with Commercial Real Estate loans to contend with going forward, so holding on to cash is probably a good move, at least for now....
It's hard to be patient when a company lays a big dividend reduction on you, but I think this is a long term winner, so I'll stick with it.
FWIW KK discussed in the conference call restoring the divi to a 4-6% which, while still respectable, is not the 7.8(ish)% it was when cut. To expect the previous level divi or higher anytime soon at least on an absolute basis vs percentage basis is probably wishful thinking particularly since that percentage was created by a massive equity selloff.
ok, let's try a different approach to the explanation, because i think you have the big picture figured out very well -- i think you are not only able to hang onto your assets, but probably make them much larger than the averages -- you have the big picture figured out
i get the idea that you shape the trades around you macro economics somewhat similar to the way i do it, thus rarely get burned by not being on the eventual wrong side of the trade
so the only thing left to trade is the S&P 500 turn points -- which is one of the hardest feats to pull off routinely -- do you really want to trade that?
meanwhile, you're missing out on the S&P 500 turn point -- but if i were you and couldn't trade as well as me, i guess i would be on a message board posting up as much jealousy as you can possibly display -- and you did a fine job at that
look for my One-Leg Down One-Leg Up message thread and see if what i said happens, and if it does, then you missed another of more than dozens of moves i have predicted with full success
Just curious. What's your thesis on owning GE? If you want an industrial there are better options. If you want a financial there are better options. If you want media there are better options. If you want conglomerate there are better options. And if you want divi there are better options. Is it an infrastructure/ alt energy play or a trust the jockey play or rebound in aircraft engines play?
"I've gotten myself back to being up about 5% since the bear market started and feel making a 2.5% yearly return in this environment is adequate."
If you consider a 2.5% annual return adequate in this environment, my advice is to liquidate your positions and put your money in cds.
Also, out of curiosity, why do you hang out on this thread if you don't have a position in bbt?
not sure how you can say that, i've disclosed my approach to the trade and it's been very clear to understand -- not to mention that your sell orders that you just filled today also fit right in line with my short-term prediction -- i said in the message thread named 'one leg down one leg up' that energy was showing a topping pattern for the short-term -- the nasdaq is in the same shoes
you bailed in your commod/energy trades on this fourth go around, and i have done the same -- i am scaling out and hedging longs and leaning short each step we go higher into the key S&P 500 # area -- i think you've done a great job -- maybe you're misunderstanding the way i say the anticipation moves of the S&P 500 -- every post has worked out for me and i traded it exactly the way i said i would, and the trading profits keeps flowing
Funnie Bucket said:
"the company itself doesn't even know the value of what's in its loan portfolio, and you trust what the company #s they are pumping out to you"
I guarantee you that the bank has a much better handle of the value in their loan portfolio compared to Funnie Bucket's grasp of macro/micro economics.
I'm happy making swing trades from weeks to many months, but I'm always willing to learn new ideas. I just thought it might be nice to understand what you're doing even if I don't use it. I've given that up, but eventhough I agree with you and will support you on your macro economic views, I won't give you a pass on your trading ideas which I can't seem to understand. I'll continue to question your results until I can see the proof of them for myself.
Either way, it makes no difference. If you are making all that money trading then good for you. If you aren't but still see the overall picture, you will avoid financial distruction which is also good for you. Good luck.
I have a ton of money in CD's and get .5% to .8%.
I "hang out on this thread" for two reasons. I like to keep an eye on what Bucket and the rest of the board have to say. Bucket because he has a good feel for the longer term and if he changes his position I may want to reconsider my ideas on the future. Second because I want to stay on the opposite side of most of the rest of the board. As they become more negative, I want to start becoming more positive and visa versa. You may be my first clue in that area. Good luck.
well, look who has showed up, the guy that wasn't anywhere to be found when BBT stock price was at the crash level of 13 -- but your company and you have such a good handle on BBT
nice to see you show up on another day that BBT has not rallied with the rest of the S&P 500 -- but you should be getting used to this by now
you gotta stop making excuses for lack of performance on BBT -- it's embarrassing