Capital One Announces Quarterly Dividend

Rhea-AI Summary

Capital One Financial Corporation (COF) has announced a quarterly dividend of $0.60 per common share payable February 23, 2024, continuing its quarterly dividend tradition since 1995. The company also declared dividends on its preferred stock, including Series I, Series J, Series K, Series L, Series M, and Series N, with varying dividend amounts and payable dates.

Financial Analyst

Capital One's declaration of a consistent quarterly dividend for common shares, alongside dividends for various series of preferred stock, signals a stable financial position and a commitment to providing shareholder value. This consistency in paying dividends can be attractive to income-focused investors and may contribute to a stable stock price. Given the historical context of consistent dividends since 1995, this can be interpreted as a strong signal of financial health and operational stability.

However, it's important to consider the dividend yield in comparison to the overall market and sector averages. Investors should assess the payout ratio to ensure that the dividends are sustainable and not compromising the company's ability to reinvest in growth opportunities. Furthermore, an analysis of the company's cash flow statements would be essential to confirm that the dividends are well-covered by free cash flow.

Market Research Analyst

The announcement of dividends across various preferred stock series indicates Capital One's strategy to cater to diverse investor preferences. Each series offers a different fixed rate, which may appeal to different risk appetites. The fixed-rate nature of these dividends suggests that the company is aiming to provide predictable returns, which could be particularly appealing in a volatile market environment.

Understanding the nuances of non-cumulative perpetual preferred stock is crucial for investors. These stocks offer a fixed dividend but do not accumulate unpaid dividends. This can be a double-edged sword; while it reduces the company's liability during downturns, it also means investors may miss out on payments if the company decides to suspend dividends. Investors should weigh these factors along with the overall interest rate environment, as preferred stocks often behave similarly to bonds.

Economist

The broader economic implications of Capital One's dividend declaration can be seen through the lens of interest rate trends and inflation. In a rising interest rate environment, the fixed dividend rates on preferred stocks may become less attractive compared to newer issuances with higher rates. This could potentially impact the demand for Capital One's preferred shares over time.

Moreover, the fixed dividend payments on preferred stock must be evaluated against inflationary pressures. If inflation is high, the real return on these dividends diminishes, which could influence investor behavior. The company's ability to sustain dividend payments in such an economic climate without affecting operational capital is a testament to its financial management and strategic planning.

Company also declares preferred stock dividend 

MCLEAN, Va., Jan. 31, 2024 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced a quarterly dividend of $0.60 per common share payable February 23, 2024, to stockholders of record at the close of business on February 12, 2024. The company has announced dividends on its common stock every quarter since it became an independent company on February 28, 1995. Dividends declared by the company are eligible for direct reinvestment in the company's common stock under its Dividend Reinvestment and Stock Purchase Plan. For additional Plan information, stockholders should contact Computershare Trust Company, N.A., at 1-888-985-2057 (inside the U.S. and Canada) or 1-781-575-2725 (outside the U.S. and Canada).  

The company also declared a quarterly dividend on the outstanding shares of its 5.00 percent Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series I (the "Series I Preferred Stock").  Each outstanding share of the Series I Preferred Stock is represented by depositary shares, each representing a 1/40th interest in a share of Series I Preferred Stock. The dividend of $12.50 per share (equivalent to $0.3125 per outstanding depositary share) will be paid on March 1, 2024, to stockholders of record at the close of business on February 15, 2024.

The company also declared a quarterly dividend on the outstanding shares of its 4.80 percent Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series J (the "Series J Preferred Stock").  Each outstanding share of the Series J Preferred Stock is represented by depositary shares, each representing a 1/40th interest in a share of Series J Preferred Stock. The dividend of $12.00 per share (equivalent to $0.30 per outstanding depositary share) will be paid on March 1, 2024, to stockholders of record at the close of business on February 15, 2024.

The company also declared a quarterly dividend on the outstanding shares of its 4.625 percent Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series K (the "Series K Preferred Stock").  Each outstanding share of the Series K Preferred Stock is represented by depositary shares, each representing a 1/40th interest in a share of Series K Preferred Stock. The dividend of $11.5625 per share (equivalent to $0.2890625 per outstanding depositary share) will be paid on March 1, 2024, to stockholders of record at the close of business on February 15, 2024.

The company also declared a quarterly dividend on the outstanding shares of its 4.375 percent Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series L (the "Series L Preferred Stock").  Each outstanding share of the Series L Preferred Stock is represented by depositary shares, each representing a 1/40th interest in a share of Series L Preferred Stock. The dividend of $10.9375 per share (equivalent to $0.2734375 per outstanding depositary share) will be paid on March 1, 2024, to stockholders of record at the close of business on February 15, 2024.

The company also declared a quarterly dividend on the outstanding shares of its Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series M (the "Series M Preferred Stock"). The dividend of $9.875 per share will be paid on March 1, 2024, to stockholders of record at the close of business on February 15, 2024.

The company also declared a quarterly dividend on the outstanding shares of its 4.25 percent Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series N (the "Series N Preferred Stock").  Each outstanding share of the Series N Preferred Stock is represented by depositary shares, each representing a 1/40th interest in a share of Series N Preferred Stock. The dividend of $10.625 per share (equivalent to $0.265625 per outstanding depositary share) will be paid on March 1, 2024, to stockholders of record at the close of business on February 15, 2024.

About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $348.4 billion in deposits and $478.5 billion in total assets as of December 31, 2023. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches and Cafés located primarily in New York, Louisiana, Texas, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

Visit the Capital One newsroom for more Capital One news.

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SOURCE Capital One Financial Corporation

What is the quarterly dividend amount for common shares declared by Capital One Financial Corporation (COF)?

The quarterly dividend amount for common shares declared by Capital One Financial Corporation (COF) is $0.60 per share.

What are the dividend amounts and payable dates for Capital One Financial Corporation's (COF) preferred stock, including Series I, Series J, Series K, Series L, Series M, and Series N?

The dividend amounts and payable dates for Capital One Financial Corporation's (COF) preferred stock are as follows: Series I - $12.50 per share, payable on March 1, 2024; Series J - $12.00 per share, payable on March 1, 2024; Series K - $11.5625 per share, payable on March 1, 2024; Series L - $10.9375 per share, payable on March 1, 2024; Series M - $9.875 per share, payable on March 1, 2024; Series N - $10.625 per share, payable on March 1, 2024.

What is the record date for stockholders to be eligible for the dividends declared by Capital One Financial Corporation (COF)?

The record date for stockholders to be eligible for the dividends declared by Capital One Financial Corporation (COF) is at the close of business on February 15, 2024.