They should be bolstering capital, not depleting it with dividend payouts. No one knows how long this downturn is going to last, and false bravado is stupid. The recession is just starting to pound Va and NC.
Fwiw, RF actually saw a pretty big boost to its stock price the day that it cut its dividend from $.38 down to $.10 last summer - for the very reason I described above.
Watch the earnings to see if BBT can afford to pay the .47 dividend. I think the analysts have the earnings just north of that (around .50) Along with the earnings, BBT had $3.2B in cash or similar at 9/30.
Never ! John Allison said he only took Tarp money because everyone else was and since the goverment was going to give it BBT might as well get some too. Dividend was just increased by a penny back in August . This coming August I look forward to seeing another penny or more .
Government running show now. If BBT took TARP, your dividend will be a penny. Same S H I T the Feds did to Bac, C, FITB, etc (raped NCC). I am an old retired guy who thought I could live on Fifth Turds dividends and hope for some future stock appreciation. FITB increased their dividend in DEC '07 to eventially have it cut to a penny. If you bite from the apple (TARP), you will be screwed. If any of you old farts out their owning a lot of BBT, I would consider selling at least a 3 year income worth of stock while you can. I wish I did but bought the cool aid and rode the stock down. This market (especially financials) is not about fundamentals and you know it is going to take a very long time to recover. This market and gov't makes me sick to my stomach. Best of luck you all.