Capital One Bumps Up Quarterly Dividend By 50%

Capital One Financial Corporation (COF) raised its quarterly cash dividend by 50% to $0.60 per share. Prior to this, the bank, which specializes in credit cards, auto loans, banking, and savings accounts, increased its dividend to $0.40 per share from $0.10 this February.

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The bank also announced a one-time special dividend of $0.60 per share. Both dividends will be paid on August 20, to shareholders of record as of August 9.

The company’s annual dividend of $2.40 per share now reflects a dividend yield of 1.49%.

Additionally, Capital One Financial announced that quarterly preferred stock dividends would be paid on September 1, to shareholders of record as of August 16.

Last week, Capital One Financial reported Q2 results. Adjusted earnings of $7.71 per share compared favorably with the adjusted loss of $1.61 per share in the same quarter last year, and outpaced Street estimates of $4.61 by a wide margin. Net revenues surged 12% to $7.4 billion and beat the consensus estimate of $7.09 billion. (See Capital One Financial stock charts on TipRanks)

Following the Q2 earnings, Oppenheimer analyst Dominick Gabriele assigned a Buy rating and a price target of $179 (10.9% upside potential) on the stock.

Gabriele expressed positivity about Capital One, saying, “…credit outlook is trending better than expectations; we think 2022 NCO rate could be below 2019 levels given unemployment levels. Our combined 2021/2022 EPS has risen 9%, largely on credit expectations. COF’s overall strategy intact and we expect historical revolve rates to return at COF first versus peers.”

Capital One Financial shares have exploded 143.1% over the past year, while the stock still scores a Strong Buy consensus rating, based on 14 Buys and 4 Holds. That’s alongside an average Capital One Financial price target of $184.82, which implies 14.5% upside potential to current levels.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Capital One Financial, with 16.7% of investors maintaining portfolios on TipRanks increasing their exposure to COF stock over the past 30 days.