Comerica Incorporated (NYSE: CMA) disclosed
that its board has lifted its quarterly cash dividend by 4.5 percent. As a result, it would now pay $0.23 per share to its
shareholders. On a full year basis, it represented $0.92 a share. The latest dividend offered 1.9 percent yield, which was higher
than the average 1.60 percent yield in the five-year period.
Comerica said the dividend would be payable October 1 to its shareholders of record on September 15. Chairman and CEO, Ralph
Babb Jr, said, "Today's dividend increase reflects our Board's confidence in Comerica's solid capital position, business model and
strategic direction, as well as our future growth potential. As we have always done, we expect to continue to actively manage
capital in a way that maximizes returns to shareholders, while ensuring that we meet regulatory capital requirements."
The dividend represented 35 percent payout of its profit, which was higher than the average 26 percent payout ratio for the
five-year period. The company has been boosting its dividend for five straight years. As a result, its dividend growth rate for the
five-year period was 20.15 percent.
Additionally, the company stated its board authorized an increase in the number of shares to repurchase under its share
repurchase program by a maximum of 10 million additional shares. The company indicated that the plan included a maximum of $440
million in equity buyback for the four-quarter period start from the third quarter of the current year and ends in the second
quarter of the next year.
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