No Longer a Distant Dream (NYSE: FITB) (NYSE: STI) (NYSE: KEY)

NEW YORK - Banks are back!, as the U.S. Government has announced the results of the "stress test" for 19 most economically important U.S. financial institutions.

PNC Financial, received a clean bill of health and plans to raise its dividend in the second quarter of 2011. While, PNC has the second strongest capital ratio behind Comerica Bank, due to weird Basel III rules, the company has less capital under Basel than it reports. Basel only counts 10% of a banks investment in another bank's stock as capital. Therefore only $2.5 billion of the PNC's $5 billion (on the books) investment in BlackRock counts towards capital. This treatment by Basel will likely be hotly contested by banks going forward. Despite this PNC still has one of the strongest Basel III capital ratios.

Wells Fargo announced a dividend raise to 12 cents giving the company a 1.5% yield. There has been speculation surrounding the company since its CFO Howard Atkins left in February.

J.P. Morgan announced that they have raised their dividend to 25 cents a share, giving the company a 2.1% yield.

U.S. Bancorp announced that they have increased their dividend to 12.5 cents giving the company a 1.85% yield.

BB&T said that they raised their dividend by 1 cent. BB&T was one of the few companies to pay a dividend above 10 cents during the financial crisis. However the company has struggled as of late and the company was only able to raise their dividend by a token 1 cent.

Bank of New York Mellon, which has the highest of quality loans among all banks, indicated today that it will raise its dividend but it did not say by how much.

M&T Bank is not expected to increase its dividend due to its already large payout as a percent of earnings. M&T was the only bank to not decrease its dividend since 2007. Though, Hudson City Bancorp has also accomplished this feat, it is expected that they will decrease their dividend this year, as the bank has been hit by problems.

Goldman Sachs and Morgan Stanley have not announced anything yet regarding their dividend. It is speculated that BAC and Citigroup will not raise their dividends until the second half of 2011.

Suntrust Banks announced it will issue $1 billion in stock and it plans to use the proceeds to buy back TARP. A dividend raise is not likely imminent for the company.

KeyCorp has still not repaid TARP, meaning dividends are likely not to occur until the second half of 2011.

Fifth Third Bancorp has recently finalized its repurchase of TARP shares but it has not yet announced a dividend raise. FITB has one of the strongest capital ratios among major banks, as it has diluted its shareholder base significantly from capital raises during the last two years.

Regions Financial looks to be the reject of the group as its stock moves lower. The banks has the worst capital ratios, and loan quality among major banks. Shareholders have bid the stock higher in recent months in hopes that another bank will buy the troubled company.