BB&T Corp. said Tuesday that it will raise its quarterly dividend, joining several other banks that passed the Federal Reserve's stress test.
BB&T is raising its dividend 25 percent, to 20 cents from 16 cents. The company's next dividend is payable May 1 to shareholders of record on April 9.
BB&T was among 15 banks that passed the Fed tests, which were designed to see if the banks could withstand catastrophic losses in a crisis. Only banks that passed were allowed to raise their dividends.
The Winston-Salem, N.C., company said the Federal Reserve did not object to the increase in its dividend. The Fed, which conducted stress tests on the 19 largest U.S. financial institutions, also did not object to BB&T's plan to redeem $3.2 billion in trust preferred securities in 2012 without issuing any replacement capital.
JPMorgan Chase and U.S. Bancorp boosted their dividends as well Tuesday after passing the Fed stress test.
Shares of BB&T rose 3.7 percent to $30.40 on Tuesday and gained 10 cents more in the aftermarket.