DALLAS - Comerica Incorporated (NYSE: NYSE:CMA) has announced a quarterly cash dividend for its common stock and an increase in its share repurchase program. The dividend of 71 cents ($0.71) per share is payable on January 1, 2025, to shareholders of record as of December 13, 2024. Additionally, the Board declared a dividend on the Series A Non-Cumulative Perpetual Preferred Stock, amounting to $1,406.25 per share, which is also due on January 1, 2025, for shareholders recorded on December 13, 2024.
In a move to enhance shareholder returns, Comerica's Board has approved the authorization to buy back up to an additional 10 million shares of its common stock. This is in addition to the 5 million shares remaining under previous authorizations as of September 30, 2024. The share repurchase program does not have an expiration date and the repurchased shares may be kept as treasury stock or retired. The timing and volume of the repurchases will be determined by a range of factors including corporate earnings, capital requirements, and market conditions.
Comerica, celebrating its 175th anniversary this year, is a financial services company headquartered in Dallas, Texas. It operates through three business segments: The Commercial Bank, The Retail Bank, and Wealth Management. With nearly 380 banking centers nationwide and offices in 17 states, Comerica is one of the largest commercial U.S. financial holding companies. As of September 30, 2024, Comerica reported total assets of $79.7 billion.
The repurchase program and the payment of dividends reflect Comerica's ongoing commitment to delivering value to its shareholders. These financial decisions are based on the company's performance and strategic growth objectives.
The information provided in this article is based on a press release statement from Comerica Incorporated.
In other recent news, Comerica Incorporated has been the subject of various analyst updates following strong third-quarter earnings of $184 million, driven by a 1.3% increase in average deposits and net interest income of $534 million. Baird affirmed a positive outlook on Comerica, raising the bank's price target from $65.00 to $75.00, citing solid pre-provision net revenue performance and plans to resume share buybacks in the fourth quarter of 2024. Other firms, including Raymond (NS:RYMD) James, Stephens, Citi, and Barclays (LON:BARC), also increased their price targets for Comerica, highlighting robust revenue growth, controlled expenses, and favorable credit trends. Despite a projected 5% decline in average loans and a 3-4% decrease in average deposits for 2024, these recent developments reflect increased confidence in Comerica's short-term financial prospects, particularly in terms of net interest income.
InvestingPro Insights
Comerica's recent announcement of a dividend payment and increased share repurchase program aligns with its strong financial position and commitment to shareholder returns. According to InvestingPro data, Comerica boasts a dividend yield of 4.55% as of the most recent data, underscoring its attractiveness to income-focused investors. This is further supported by an InvestingPro Tip highlighting that Comerica has maintained dividend payments for 54 consecutive years, demonstrating a long-standing commitment to returning value to shareholders.
The company's market capitalization stands at $8.32 billion, reflecting its significant presence in the financial services sector. Despite a challenging environment, Comerica's P/E ratio of 15.71 suggests a reasonable valuation relative to its earnings. This is particularly noteworthy given another InvestingPro Tip indicating that analysts predict the company will be profitable this year.
Comerica's strong financial footing is further evidenced by its robust performance in recent months. The InvestingPro data shows a impressive 22.49% price total return over the last three months, aligning with the InvestingPro Tip noting a strong return over this period. This positive momentum could potentially support the company's expanded share repurchase program.
For investors seeking a deeper understanding of Comerica's financial health and future prospects, InvestingPro offers 7 additional tips, providing a more comprehensive analysis to inform investment decisions.
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