Capital One Financial: Solid 7% Yield From Series I Preferred Shares

Capital One Financial offers five preferred shares, with Series I favored for its higher dividend and lower interest rate sensitivity. COF's acquisition of Discover Financial has been well integrated, supporting stable net interest income and improved yield spreads above 7% for five consecutive quarters. Loan growth remains robust at 4.5% year-over-year, while deposit growth and a stable 90% loan-to-deposit ratio underpin balance sheet strength. Nonperforming assets are under 1%, and a 5% allowance for credit losses provides strong coverage, supporting the sustainability of the preferred dividend.

Capital One Financial (COF) is a credit card lending depositor bank. The institution’s size has grown with its acquisition of Discover Financial Services.