Capital One Financial: Boosting The Income With Preferred Stock

Capital One Financial delivered strong Q2 earnings, with $2.94B net profit and EPS of $4.73, despite $3B in credit loss provisions. COF’s integration of Discover Financial is on track, targeting $2.5B in annual synergies by late 2027, supporting double-digit EPS growth projections. Credit loss provisions decreased by 25% quarter-over-quarter, while delinquent credit card exposure fell by $1.7B in H1, indicating improving credit quality. A hybrid approach - combining COF common shares for capital gains and Series N preferreds for yield - can enhance total return and income potential.