In meeting with analysts(just concluded) stated that there will be no dividend increase until sometime in 2011. This statement will kill the stock. King had previously stated that dividend increase might come in fourth quarter of 2010. Would not buy above $20 per share. Very disappointed and have changed my outlook.
giving the economy, BBT's dividend is better than PNC, JPM, BAC,RF, and most others. Banks are cautiuos until they see meaningful job growth. Remember BBT's revenue stream is limited, they don't have all the income streams like a JPM or BAC.
True. Considering, the dividend is a little better than most, but what bugs me is when a company's profits go down a bit, upper mgt screams expenses must be cut. I agree. But, have you noticed the expenses are never cut from the top end, always from the bottom end. This is the only area I agree with BO and Joe that we should be equal. Cuts should be from the top to the bottom, not just from the bottom. We the common stock holders need to start voting at stock holder meetings.
He was being as honest as he could be when he earlier said he MIGHT increase in late 2010...now he is being honest again by saying that it will be in 2011. I think he will do the increase as quickly as he feels comfortable in maintaining it. They don't ever want to cut it again. Their consistent earnings should be reflected in the stock price...but it never is.
King previously said that BB&T would maintain the dividend between 40 and 60 percent of earnings. At the 40% level,it takes $ 1.50 per share of earnings to support the current dividend of $.60. This morning S & P adjusted their projection of 2010 earnings to $ 1.42. 40 % of that amount in $.578.
I agree that upper level mgt should be compensated well for their position and expertise(?), but the extreme salaries and benefits are not justified in most cases. These should be tied directly to the performance of the company and not provided by boards that have almost been appointed by the CEO. Case in point. BP's CEO being fired and receives a termination package of over $18,000,000 dollars. Wrong.