Just after announcing better-than-expected fourth-quarter
results, the board of directors at
) declared a 15% hike in the quarterly cash dividend to 23 cents.
The dividend is payable on Mar 1 to shareholders of record as of
The dividend hike/payout is consistent with its 2012 capital
plan, which was approved by the Federal Reserve. In Mar 2012,
following the release of the Fed's stress test results, the
company received the green signal to hike its quarterly dividend
by 25% to 20 cents per share.
BB&T paid total common dividends of 20 cents during the
fourth quarter of 2012, which resulted in a dividend payout ratio
of 28%. Though the company did not repurchase any shares in the
quarter, it has nearly 700 million shares left to be repurchased
as of Dec 31, 2012.
BB&T's fourth-quarter 2012 earnings came in a penny ahead of
the Zacks Consensus Estimate. Growth in revenue and a fall in
operating expenses, partially offset by slightly higher provision
for credit losses, were mainly responsible for the improvement in
the quarterly results. Further, overall credit quality recovered,
while capital as well as profitability ratios were stable.
Accelerating growth in loans and low-cost deposits were
impressive as well.
Among other companies in the financial sector that have hiked
Wells Fargo & Company
). The dividend hikes reflect the strong liquidity of these
companies. Moreover, we believe that the strong liquidity levels
will help these companies to successfully clear Fed's Stress
Currently, BB&T carries a Zacks Rank #3 (Hold).
BB&T CORP (BBT): Free Stock Analysis
BLACKROCK INC (BLK): Free Stock Analysis
COMERICA INC (CMA): Free Stock Analysis
WELLS FARGO-NEW (WFC): Free Stock Analysis
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