Doubtful. Kelly King indicated he wanted to raise the dividend in the second quarter if BBT received permission from regulators. Additionally, the announcement is about a month early. I believe BBT just got word that the dividend cannot be increased for one year, and so they announced the $.15 - it is very disappointing. BB&T has been one continuous disappointment for a long time in my opinion.
A few excerpts may suffice: ..... However, King cautioned that until nonperforming assets and net charge-offs peak and then consistently decrease, BB&T is not prepared to raise its dividend. ..... Yesterday, King said that the bank's goal is to increase the dividend "as quickly as possible.
"That will occur when we have good visibility in regards to the economy … our own asset quality and earnings that will support a higher dividend," King said; that scenario could occur as early as late 2010 or early 2011.
"We do understand the importance and responsibility we have" regarding the dividend, particularly for those shareholders who count on it for living expenses, he said.
Robert Patten, an analyst at Morgan Keegan, said that the dividend carries more importance for BB&T than some of its peers because it has significant individual shareholder ownership.