7. BB&T Corp.
Shares of BB&T Corp. (BBT) of Winston-Salem, N.C. closed at $27.01 Friday, down 13% from a year earlier.
Following the completion of Federal Reserve stress tests, BB&T announced Friday that it would increase its second-quarter dividend by a penny to 16 cents, and also pay a special dividend of a penny a share.The company had $157 billion in total assets as of December 31, with over 1,800 offices mainly in the South and Southeast, as well as in Washington, D.C. For 2010, BB&T earned $816 million, or $1.16 a share, improving from net income available to common shareholders of $729 million, or $1.15 a share, in 2009, when the company paid $124 on dividends and accretion on preferred stock, including shares held by the government for $3.1 billion in TARP assistance, which was repaid in June 2009. BB&T's ROA for 2010 was 0.53%. The consensus earnings estimate is $1.70 for 2011 and $2.58 for 2012. The forward P/E is 15.9 based on the 2011 estimate and 10.5 based on the 2012 estimate. On March 15, Matt O'Connor of Deutsche Bank (DB) upgraded the shares to a buy with a $31 price target, saying that the stock's recent underperformance reflected concerns over an increase in troubled debt restructurings and "more recently that BBT would overpay for a deal." The analyst said that M&A concerns seemed "overblown" and that "performance should improve as the stock now trades in line/below peers despite better
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