Capital One Financial's Preferred Stock Series N Yield Pushes Past 6.5%

Capital One Financial's 4.25% Depositary Shares Non-Cumulative Perpetual Preferred (COF.PRN, Series N) was yielding above 6.5% based on a quarterly dividend annualized to $1.0625. Shares traded as low as $16.26 intraday, implying a market-implied yield well above the coupon and a depressed price relative to par for income-seeking investors.

Analysis

Capital One Financial's 4.25% Depositary Shares Non-Cumulative Perpetual Preferred (COF.PRN, Series N) was yielding above 6.5% based on a quarterly dividend annualized to $1.0625. Shares traded as low as $16.26 intraday, implying a market-implied yield well above the coupon and a depressed price relative to par for income-seeking investors.