For as long as any Senior Preferred is outstanding, no dividends may be
declared or paid on junior preferred shares, preferred shares ranking pari
passu with the Senior Preferred, or common shares (other than in the case
of pari passu preferred shares, dividends on a pro rata basis with the
Senior Preferred), nor may the QFI repurchase or redeem any junior
preferred shares, preferred shares ranking pari passu with the Senior
Preferred or common shares, unless (i) in the case of cumulative Senior
The UST’s consent shall be required for any increase in common
dividends per share until the third anniversary of the date of this
investment unless prior to such third anniversary the Senior Preferred is
redeemed in whole or the UST has transferred all of the Senior Preferred
to third parties.
If dividends on the Senior Preferred are not paid in full for six dividend
periods, whether or not consecutive, the Senior Preferred will have the
right to elect 2 directors. The right to elect directors will end when full
dividends have been paid for four consecutive dividend periods.
You can find the restriction on dividends for common shares. If I understand it correctly, a dividend increase would have to be approved by UST anytime during the first 3 years.
My sense of what is going on now is somewhat cynical. No one is making much money buying stocks. Lots of money has been made shorting financials. Only a few financials remain as somewhat rich targets. BBT is one though alot less rich than it used to be.
Nothing is definite in this world except that all things die sooner or later. I do believe KK will do every thing possible to keep the div. He definitely does not want the div. to be cut on his watch.
It appeaars that you missed what Kelly King said on the Analysts' Conference Wednesday. He did everything but guarantee (and no one would ever make a guarantee) that the dividend would be kept. They recognize that the stock is mostly retail and people depend on it. Then, if you listened to the chief credit officer talk about lending and reserves, you would be very confident about a dividend that has been increased for 37 straight years.
The average is -17%, BBT is -13%. The banks will eventualy tell Uncle Sam what needs to be done, mark-to-market or Bad Bank.
U.S. commercial banks Assets Share price performance Feb. 10
JPMorgan Chase $2.25 trillion -10%
Citigroup $2.05 trillion -15%
Bank of America $1.83 trillion -19%
Wells Fargo $622 billion -14%
State Street $286 billion -13%
Bank of New York Mellon $268 billion -8%
US Bancorp $247 billion -14%
SunTrust Banks $175 billion -27%
Capital One Financial $156 billion -14%
PNC Financial $146 billion -11%
Regions Financial $144 billion -30%
BB&T $137 billion -13%
Fifth Third $116 billion -24%
KeyCorp $101 billion -27%