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Buy BB&T Corporation (BBT) Stock for the Dividend, Hold It for the Growth

There's a lot more growth in BBT stock than people give it credit for

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However you want to slice it, there’s a lot more growth here than people see. Either we’re building the 74 cents EPS back into the 2017 math and looking at 11% growth or keeping the GAAP number, in which case BBT is on track to expand its earnings by an even faster rate of 22% over the next 12 months because the trailing base is that much lower.

Choose a model, but on the one hand, at a maximum of 15 times current earnings, the near future has plenty of room to discount the multiples either way.

On the other hand, the near term could easily give BBT stock an accelerated payday without stretching historical valuations one bit. This was a $49.54 stock back in March before the reporting controversy hid its true potential.

Wall Street is currently willing to split the difference, maintaining a $45 target on the shares. Add the dividend, and the possibility that management will find another tempting acquisition to raise the ramp, and it’s no surprise this is one of my favorite banks to invest in right now.

Hilary Kramer is the editor of GameChangersBreakout StocksHigh Octane Trader, Absolute Capital Return and Value Authority. She is an accomplished investment specialist and market strategist with more than 25 years of experience in portfolio management, equity research, trading, and risk management. She has extensive expertise in global financial management, asset allocation, investment banking and private equity ventures, and is regularly sought after to provide her analysis on Bloomberg, CNBC, Fox Business Network and other media.

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