Why We're Wary Of Buying Comerica's (NYSE:CMA) For Its Upcoming Dividend
Comerica Incorporated is set to trade ex-dividend in four days, with its next dividend payment scheduled for April 1st. The company has a trailing yield of approximately 4.9% and has paid out an acceptable 56% of its profit as dividends. However, Comerica's earnings have declined by 8.5% per annum over the past five years, raising concerns about the sustainability of its dividend payments.
- A declining dividend payout ratio with falling earnings is a red flag, suggesting that Comerica may struggle to maintain its current dividend levels in the face of decreasing profitability.
- How will Comerica's ability to continue growing its dividend payments despite declining earnings impact its long-term attractiveness as an income-generating investment opportunity?