BB&T Corp.: Quarterly Dividend Up; Projected Payout Ratio Down

BB&T Corp (BBT) announced a penny increase in the company's quarterly dividend. The new quarterly dividend increases to $0.47 per share versus $0.46 per share in the same quarter last year. It is encouraging to see the company come through with an increase, but the projected payout ratio is 74% based on 2009 estimated earnings per share of $2.52. The 2009 estimate is $0.12 lower than the 2008 EPS of $2.64.

BBT carries a A- S&P Earnings & Dividend Quality Ranking.

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Disclosure: I hold an interest in BB&T Corp.

Comments

[David I. Te...:]

The projected payout ratio has actually moved actually higher. The 5-Year average payout is 54%.

2008 Dec 18 09:08 AM

[fcharlie:]

Do your homework next time. This is not a new increase. The 47 cent dividend rate was first declared in June, and has now been held steady for 3 quarters in a row.

2008 Dec 18 09:40 PM

[helplessobs...:]

BBT is run like a bank should be run, lend money to people who you know and can judge their ability to repay the loan. Trading between 25 and 35 it is an excellent vehicle for the "collar" type option spread. I own BBT been following it for years.

2008 Dec 19 10:50 AM