They posted 4th quarter profits. Until such time the dividend payout creates such a drag on profits that they are loosing money; there is no reason to cut it. Remember: BBT has never failed to pay a dividend even through the Great Depression. rd
I don't consider this old news unless you are a board member that knew of the possibility prior to them meeting just hours ago....
Here is where I got my fact from.
SunTrust Declares Quarterly Dividend 61 minutes ago - Pr Newswire
Related Companies Symbol Last %Chg STI 9.29 -25.33%
As of 2:48 PM ET 2/10/09 The Board of Directors of SunTrust Banks, Inc. (NYSE: STI) today declared a regular quarterly cash dividend of $0.10 per common share. The dividend is payable on March 16, 2009, to shareholders of record on March 2, 2009, and reflects the previously announced reduction in the dividend from $0.54 in the previous quarter.
SunTrust noted that it will also pay to the U.S. Treasury approximately $60 million in dividends on the Company's Perpetual Preferred Stock, Series C and D, which was purchased under the Capital Purchase Program.
The Board of Directors also announced a quarterly cash dividend of $1,000.00 per share on SunTrust's Perpetual Preferred Stock, Series A, declared payable in cash on March 16, 2009, to shareholders of record at the close of business on March 2, 2009.
SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. As of December 31, 2008, SunTrust had total assets of $189.3 billion and total deposits of $113.4 billion. The Company operates an extensive branch and ATM network throughout the high- growth Southeast and Mid-Atlantic states and a full array of technology-based, 24-hour delivery channels. The Company also serves customers in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the Company provides mortgage banking, insurance, brokerage, investment management, equipment leasing and capital markets services. SunTrust's Internet address is suntrust.com.
Don't count on it. Compare their capital ratios and dividend paying histories. I think things would have to get MUCH worse for BB&T to consider cutting their divy. Will they likely increase it going forward? Depends
In recent blogs concerning BBT, I have learned that they, too, are holders of toxic assets especially in the Obama DC area. Everyone was thrilled when they increased the div early in the year but no one including them could have imagined the shear size and scope of this recession/depression. I own them for the dividend but I now have doubts that they will be able to pay it. I expect it to be cut in half. JMHO