Comerica Inc. (CMA) is boosting investors' confidence by doubling its dividend and announcing a share repurchase authorization. The dividend, which increased to 10 cents from 5 cents paid in the prior quarter, is payable on January 1, 2011, to common shareholders of record December 15, 2010. 

The board of directors of Comerica also authorized a share repurchase of 12.6 million or around 7% of the outstanding common stock as of September 30, 2010. In addition, the board has authorized outstanding warrants to purchase up to another 11.5 million shares. This authorization will replace the company's previous share repurchase programs.  

During the third quarter earning release, management at Comerica provided guidance for the fourth quarter. Management expects non-interest income to fall by single-digits sequentially. Further, it expects market-related fees to be lower due to the vigilant nature of customers in a sluggish and uncertain economic environment.  

Comerica's management also projects a low single-digit increase in non-interest expenses compared with the third quarter of 2010. The projection includes an estimated $5 million negative impact reflecting the accumulation of the remaining original issuance discount on the redemption of trust preferred securities. Hence at this time we keep our finger crossed. 

Comerica shares currently have a Zacks #5 Rank (Strong Sell), indicating significant potential for downward pressure on the shares over the near term.