Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Comerica First to Raise Dividend, Approves Share Buy

Don't Miss Out —
Follow us on:

Nov. 16 (Bloomberg) -- Comerica Inc., the Dallas-based bank that posted annual profits throughout the financial crisis, became the first of the largest U.S. lenders to raise its dividend, doubling the payout to 10 cents. The stock climbed.

The dividend is payable Jan. 1 to shareholders of record on Dec. 15, the company said today in a statement. Comerica also authorized the repurchase of up to 7 percent of shares outstanding, sending the stock higher by as much as 3.4 percent in extended trading after closing at $36.74 on the New York Stock Exchange.

“You will see a number of the stronger banks increase their dividends over the next quarter,” Jennifer Thompson, an analyst at New York-based Portales Partners LLC, said in an interview. She assigns a “hold” rating to shares of Comerica, which ranks among the 20 biggest U.S. commercial lenders by assets. “The regulators have put rules in place and now it will be a matter of making individual decisions for each bank.”

Investors and analysts have used quarterly conference calls to press banking executives about the timing of dividend increases. Federal Reserve Governor Daniel Tarullo said Nov. 12 that banks seeking to raise payouts will be required to undergo a stress test showing they would have sufficient capital for two years.

JPMorgan Chase & Co., Wells Fargo & Co., U.S. Bancorp, PNC Financial Services Group Inc. and BB&T Corp. may be next to announce higher dividends, Thompson said.

Comerica’s buyback plan may include as many as 12,576,281 shares, and the bank also may repurchase warrants covering 11,479,592 shares, according to the statement.

To contact the reporters on this story: Dakin Campbell in New York at dcampbell27@bloomberg.net; Peter Eichenbaum in New York at peichenbaum@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.