BB&T Corp. (BBT)

A play on US financials and they are focusing on dividends.

Has been moving sideways for about a year or so, which he thinks is largely due to the effect of interest rates in the US not increasing. If you look at most of the US banks, you see the similarity. If you have the opportunity to buy now before the interest rates go up, it’s a good bank. Has exposure to the Florida corridor all the way up. Decent bank. Pays a growing dividend.

He looks at valuations and geographical locations. Some regions are doing better economically. They are in North Carolina, and the US east coast. Has a very big consumer bend to it and a lot like the Canadian banks. He likes the outlook for it. Loan growth should be increasing. It should have better earnings and dividend growth and little exposure to the two energy markets.

Likes the geography they are in. Likes the quality of the management and of the balance sheet. 2.54% dividend.

(A Top Pick Oct 24/13. Up 10.43%.) Thinks this is the best regional bank and he wants to be exposed to it. Has recently traded off a little bit, but a large portion of that has to do with the fact that the interest-rate expectation did not occur. At some point in time, higher interest rates will drive the stock to a high level.

Regional bank, south west US. Commercial, residential. Good risk management. A good story long term. only 12% above book value. 2.6% dividend.

This is a bank that is big in Florida and along the East Coast. These banks need higher interest rates. They had a good run when people thought rates were going higher. Rates didn’t go higher, but will eventually. US banks will do well in that environment.

(A Top Pick May 24/13. Up 15.1%.) A US regional bank. Likes this long-term and interest rates will move it higher. It’s in markets that he likes i.e. Canadians that go down to sun in the winter. Wouldn’t have problems adding at this price.

(A Top Pick March 15/13. Up 34.34%.) A lot of these banks lend to the housing area, developer and homeowner, and he thinks this is a healthy place to be right now.

A play on the recovering south east US. Pays a good dividend, good management and does not have the regulatory requirements the banks have. A well known bank in the south.

Not doing too well. Is not showing signs of bottoming. Usually does well from Oct to Dec of each year. It is not a situation to be in right now.

This is a call on a recovery of the US economy. Higher interest rates will move this higher as well as a general turnaround on business sentiment. Good balance sheet. Didn’t blow up during the recession.

(Top Pick Sep 24/12, Up 6.01%) He hoped for more, partly because of the government shutting down and slowing down the mortgage market. A long term holding. The economic growth in the US will be reflected right away in their business.

(A Top Pick July 13/12. Up 13.57%.) Longer-term, the catalyst here is going to be the conclusion of litigation so he has some fairly bullish upside once that litigation is removed.

2.8% dividend. US banks are going to benefit as interest rates go higher. This is an east coast bank. Didn’t blow up during financial crisis.