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July 2010

Recs

4

US Bancorp, Wells Fargo and BB&T are buys

July 07, 2010 – Comments (0) | RELATED TICKERS: USB , WFC , BBT

With the stock market's recent downturn, I feel comfortably saying that US Bancorp, Wells Fargo and BB&T are all potential buys. Alternatively, they are all good candidates for call option sales, with annualized premiums for Jan 2011 puts of over 20%. All three are strong, conservative banks. They paid pretty hefty dividends before the crash. Wells and USB both pay nominal dividends but will be able to quickly increase their payouts once they get clearance from the Treasury. BB&T cut its dividend far less and it actually pays a 2% dividend right now, and I also foresee healthy dividend growth.  [more]

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