Combined with lower ongoing additions to reserves means one heck of a rebound year in 2011 for BBT!
The big cloud on the horizon -- when will the Fed raise interest rates, which would squeeze margins (not to mention put a damper on the whole banking sector).
The wild card -- will BB&T make a large acquisition in 2011. They seem to be looking for another Colonial-type deal rather than a straight buyout or merger, which makes sense but will be harder to come by.
Dividends -- increase likely but may be in 2H instead of 1H. I'd like to see BBT do a two-step increase this year with the first part in 1Q. Either way, a boost to the stock price. However, the amount of the increase could be tempered by an acquisition (or a set aside for one).
All in all, my guess is a YE target in the $35 - $38 range.
S&P is calling for about 2.80 in earnings for 2011. That supports a 1.00 dividend. Since I have been following BBT they stick to a schedule on dividend announcements so we'll see it on that schedule. Don't worry about large rate increases in 2011. Worry more about macroeconomic setbacks. We could see some sell-off with an overall market correction. More opportunity to get on this long term winner.