Summary

• Capital One Financial (COF) offers five series of preferred stocks, all rated BB, with yields around 6.6% and strong dividend coverage.
• COF's robust Tier 1 capital ratio and 19.8x equity-to-preferred coverage indicate minimal default or dividend risk for preferred holders.
• Net income covers preferred dividends by 10.3x, supporting income reliability even if net interest margins decline.
• Call risk is mitigated by focusing on lower-coupon issues and those with later call dates, as higher-coupon series are more likely to be redeemed first.
• While all could be rated as Buys, I chose to limit that to the COF-N as having the lowest coupon, so if rates do collapse, it would be the last one Called.
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Introduction

This article updates my prior article review of the Capital One Financial’s (COF) preferred stock offerings. When maybe one of these days, the FOMC restarts rate cuts, that would bode well for price

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