SunTrust Banks Stock: Fortunes Rise and Fall

If, at any time between 1920 and 1985, you were a member of a wealthy Atlanta household, the odds were strong that your family owned stock in both Coca-Cola and the Trust Corp. of Georgia. Investing in the powerhouse conservatively managed stocks was just something you did, practically on autopilot.

And for about seven decades, the Trust Corp. of Georgia was as beautifully boring as its name suggests. It would make about 5-6% more loans per year, grow profits anywhere between 5-9% per year depending on interest rates and the strength of the economy, and the investors would collect a 2-4% cash dividend. All told, it was a solid way to own a great asset that would compound at 7% to 13% per year. And you would get the benefit of participating in your community’s growth.

That all changed in 1985, when the Trust Corp. of Georgia decided to merge … Read the rest of this article!