On Tuesday, Capital One Financial Corp’s 5.00% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series I (Symbol: COF.PRI), was yielding above 6.5%, with shares trading as low as $19.21. The stock’s quarterly dividend is annualized at $1.25, contrasting with an average yield of 6.66% in the Financial preferred stock category. COF.PRI is currently trading at a significant discount of 22.40% to its liquidation preference, compared to the average discount of 10.25% in its sector.
As of the same day, COF.PRI shares were down approximately 0.4%, while Capital One’s common shares (Symbol: COF) rose about 3.1%. Investors should note that COF.PRI is not cumulative, meaning any missed dividend payments are not required to be compensated before resuming payments to common shareholders.
