Dividend.com: Valmont Beats Again

Major regional bank BB&T(BBT Quote) said Friday that despite a 26% drop in first-quarter profits, it still easily beat analyst EPS expectations.

The Winston-Salem, N.C.-based company said its fiscal first-quarter profit was $271 million, or 48 cents per share, down from $428 million, or 78 cents a share, in the year-ago period.

On average, Wall Street analysts expected profits of 32 cents per share.

The company said that it set aside $676 million for credit losses in the quarter, which is triple the amount it allotted in the same period last year. Housing-related losses drove the credit weakness, specifically in Washington, D.C., Florida and Georgia.

To date, BB&T has accepted $3.1 billion in bailout money from the federal TARP program, and many remain skeptical about its ability to continue to pay its $1.88 annual dividend. The company said it will evaluate its dividend payout, and consider a cut, with the goals of remaining well-capitalized and paying back its government loans.

BB&T shares rose $2.51, or 11.8%, in morning trading Friday.

We removed shares of BBT from our "Recommended" list on Oct. 9, when the stock was trading at $33.01. The company has a dividend yield of 8.92%, based on last night's closing stock price of $21.07. As we said earlier, the prospects for a dividend cut is high. The stock has technical support in the $14-$16 price area. If the shares can hold on to recent gains, we see overhead resistance around the $23-$25 price levels. We would remain on the sidelines for now.