Remember when the CFO Chris Henson said that BB&T was TEMPORARILY reducing the dividend. Wonder how our lying management defines temporary. We retirees that invested in BB&T over the years have been hurt considerably. But BB&T now gives out restricted stock instead of options so the management team gets the appreciation with no risk. At least with options issued at FMV they had to increase the stock price to line their pockets.
None taken. but the past is a very powerful indicator as the mgmt and the culture of the institution is still much same. We are coming up on the 20 yr cycle of when this stock took off. I would agree if you were smart enough to buy at the very bottom of the bottom for BB&T you have made a good "Trade" one that you may be able to sit on for some time unless there is a better opportunity to deploy that captial. The investment decision, however, is another matter....your willingness to review on a Q by Q basis is prudent and tells me you are smart, and not a blind buy and hold investor in this company.
Actually, I agree with you. Trading this stock is the ONLY way to make money. It is not an investment, it is a trade, something I have said before, as well. Too many shills on this Board have continued to position this stock as a "great" investment due to the longstanding value addition provided by mgmt, etc. no way. I too have made money owning this stock, and then selling, over and over again. It used to very simple, it traded on the dividend, in a very narrow range - - it went up until the divdiend looked relatively unattractive, then sold off until the dividend looked good...it porpoised. The last 24 months have obviously changed that set up, but it used to be very easy...traded like a bond. The ducational point here is that there is nothing special about this "investment" to warrant a 3-,5-,10yr hold.
Remember when BB&T more than tripled from 1991-1999 before splitting 2 for 1 in 98? Remember when BB&T traded solely in the 32-42 dollar range from 2000-2008? Remember annunal dividend increases through-out this entire period? Remember in it's more than 140 year history BB&T has never failed to pay a dividend, even through the Great Depression? Remember?
i've heard that speech before -- it's very different this time -- you're not prepared for the mess
you'll get your stellar fake bank industry earnings as long as the govt allows it and dumps more trillions into the system, but when the trillions stop, so does the rally
Bernanke is clueless -- he thinks you can spend your way out of this recession -- moron tells you we didn't put enough into the system to save the Great Depression -- on that count he is right, but what he fails to equate is... this is not an industrial exporting nation anymore -- we become a service oriented spending nation with higher imports, which bleeds the country of its economic value added balance sheets -- and since we became a CONSUMER nation, then the idea of put more into the economy doesn't work this time -- flupping guy has his thesis all screwed up!!!
what's worse is that china is just as screwed up, they can wake up and realize they were a consumer nation and now became the industrial nation and that they should be the ones stop buying our debt with their money and put the money into their system and spend their way out of it -- why is everyone so clueless
Geee, ya think? These guys aren't liars nor are they crooks, they are just simpletons. As in the Mayor of SimpleTown. I think well over a year ago I warned everyone not to be a stalwart supporter of this company, that they would get rolled into a mess along with everyone else. And over a decade of value has been erased, along with dividends. Your predicament, ie. a retiree who needs the income is scary, and i sympathize. Yet I have listened to the shills on this Board say over and over again about the clean moral conservative mgmt and leadership at BB&T, and where has it gotten everyone? What about all the employees who had gone all in with their 401Ks? They dont get any restricted stock grants. I have said it beofre and I'll say it again...this comapny needs to be bought out, its the only way to make substantial shareholder accretive value, but the Mgmt is convinced (wrongly) that they can build a better a mousetrap...so live and learn. For you it might be too late.
This bank has outperformed its peers thru the worst economic downturn in most all of our lives. They made money while their peers lost billions with a "B". So why should they be bought? Because Mr. Cosmopolitan here predicted a banking downturn after IndyMac collapsed? Talk about simple!
I feel for the the original poster, but would also point out that one of BB&T's biggest mistakes over the past decade was paying out dividends they should have kept in cash reserves. BB&T was paying out over 65% of net profit in dividends, and it eventually bit them. My guess is you will never see those levels of dividend payouts from this company again. If you're waiting on them, I'd say cut your losses and move on. But they did pay 17 cents, when again, their peers paid a penny if they paid anything.
I'd say BB&T will bring the dividend back to reasonable levels when the economy actually does turn around. "Reasonable" dividend payouts are more like 50% of net profits, not 65-70%. But 50% of BB&T's net profits in 3-5 years should be a very nice payout. If you're in this stock (or any bank for that matter) for the dividend over the next couple of years, you're going to be a disgruntled shareholder.