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Over the past year, Capital One has distributed US$2.40 per share to its shareholders, reflecting a trailing yield of approximately 2.3% based on its current stock price of $106.32. The company’s payout ratio, a conservative 18% of its post-tax income, suggests the sustainability of its dividends.
The firm’s financial health is further underscored by its impressive earnings growth. In the last five years, Capital One has seen its earnings grow rapidly at an annual rate of 29%. Concurrently, it has increased its dividend at an average rate of about 28% per year over the past decade. This consistent growth in both earnings and dividends positions Capital One Financial as an appealing investment from a dividend perspective.
Potential investors are advised to consider two warning signs associated with Capital One Financial before investing primarily for its dividends. The specifics of these warning signs were not provided in the context.
In addition to the information provided, InvestingPro offers further insights into Capital One Financial Corporation’s (COF) performance. According to InvestingPro data, as of Q3 2023, the company boasts a market cap of 40.49B USD. The P/E Ratio (Adjusted) stands at 7.93, indicating a potentially undervalued stock. Despite a -10.77% revenue growth over the last twelve months, the company has managed to maintain a healthy operating income margin of 25.6%.
Two InvestingPro Tips that investors may find particularly useful are that despite a declining trend in earnings per share, Capital One has maintained dividend payments for 29 consecutive years. This is a testament to the company’s commitment to rewarding its shareholders. Additionally, 8 analysts have revised their earnings upwards for the upcoming period, suggesting a potential upside in the near future.
There are hundreds of additional InvestingPro Tips available for those interested in a deeper analysis of Capital One Financial Corporation or any other company. These tips, along with real-time data, could provide valuable insights for both novice and seasoned investors.
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