Tuesday, March 13, 2012

BB&T passes stress test, to increase dividend

BB&T announced Tuesday that it passed its federally mandated stress test and will boost its dividend 25 percent.

The dividend will now stand at 20 cents per share, up from 16 cents.

"We are pleased to provide this substantial dividend increase to our shareholders and are committed to a robust dividend payout," CEO Kelly King said in a statement. "We continue to be one of the strongest capitalized institutions in the industry and believe our 2012 capital actions confirm that strength and our commitment to our shareholders."

The Federal Reserve also did not object to the bank's plan to redeem $3.2 billion in trust preferred securities, a form of long-term subordinated debt similar to preferred stock.

News of the stress test results began trickling out Tuesday afternoon, after J.P. Morgan Chase & Co. announced that it had passed and would increase its dividend.