Fed Allows Comerica to Buyback $288M in Stock (CMA)
The Federal Reserve is allowing financial services company Comerica Incorporated (CMA) to follow through on the share repurchase program outlined in its capital plan, it was announced on Thursday
The plan, reviewed in connection with the bank stress tests, calls for Comerica to repurchase $288 million in stock from the second quarter of 2013 to the first quarter of 2014.
“We are pleased the Federal Reserve has completed its review and that we are moving forward with our 2013 capital plan,” said Ralph Babb, CEO of Comerica. “Our ability to execute our plan reaffirms our company’s strong capital position and continued focus on growth.”
Earlier in 2013, Comerica increased its quarterly dividend payout 13%, from 15 cents per share to 17 cents per share.
“We remain focused on total payout to shareholders, reflected by share repurchases and dividends, while maintaining our strong capital ratios,” Babb said.
Comerica shares were down a fraction during Friday morning trading. The stock is up 8.97% over the past twelve months.
The Bottom Line
Shares of Comerica (CMA) have a dividend yield of 1.86% based on Friday’s intraday trading price of $36.61 and the company’s annualized dividend payout of 68 cents per share.
Comerica Incorporated (CMA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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