Cash Dividend On The Way From Capital One Financial Corp's Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C

On 5/13/15, Capital One Financial Corp's Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C ( COF.PRC) will trade ex-dividend, for its quarterly dividend of $0.3906, payable on 6/1/15. As a percentage of COF.PRC's recent share price of $25.38, this dividend works out to approximately 1.54%, so look for shares of COF.PRC to trade 1.54% lower — all else being equal — when COF.PRC shares open for trading on 5/13/15. On an annualized basis, the current yield is approximately 6.13%, which compares to an average yield of 5.66% in the "Financial" preferred stock category, according to Preferred Stock Channel.

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As of last close, COF.PRC was trading at a 1.92% premium to its liquidation preference amount, versus the average premium of 2.00% in the "Financial" category. Investors should keep in mind that the shares are not cumulative, meaning that in the event of a missed payment, the company does not have to pay the balance of missed dividends to preferred shareholders before resuming a common dividend. The chart below shows the one year performance of COF.PRC shares, versus COF:

Performance Comparison Chart

Below is a dividend history chart for COF.PRC, showing historical dividends prior to the most recent $0.3906 on Capital One Financial Corp's Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C :

COF.PRC+Dividend+History+Chart

According to the ETF Finder at ETF Channel, Capital One Financial Corp ( COF) makes up 2.03% of the iShares U.S. Financial Services ETF (IYG) which is trading relatively unchanged on the day Monday.

In Monday trading, Capital One Financial Corp's Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C ( COF.PRC) is currently off about 0.4% on the day, while the common shares ( COF) are trading flat.

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