Capital One Financial to Launch New Preferred Issue

Capital One Financial (COF) has announced that they will be selling a new issue of $25/share preferred stock.

The permanent ticker will be COF-N (OTC grey market ticker to be announced later. The issue will be split investment grade.

COF has many other issues outstanding which can be seen here. They last sold a preferred issue on 4/29/2021 which carried a 4.375% coupon today trades at $25.12.

The preliminary prospectus can be read here.

J was right on this one.

20 thoughts on “Capital One Financial to Launch New Preferred Issue”

      1. IB does not trade grey market tickers so unless you want to wait for COF-N you need to buy elsewhere.

  1. If all the money in crypto was not in crypto , as if it had never happened , where would the money be now and what does it tell us ?

  2. If I invest $2800 for 2 years in Duk-A > at call i will have $2900 < What is my return ?

    1. If you bought DUK-A at this moment it would cost 28.06 per share. With dividends, you would collect 29.31 through first call. Your TOTAL return would be 4.46%, or 1.64% roughly annualized. My Excel like formula gives me 1.68%. Anyone else with a formulaic answer?

    2. Marvin, if you have Excel you can perform the calculation there.
      Assumptions:
      -bought today 100 shares @ 28.00 commission free= $2800
      – settle date 7/28/21
      – regular dividends every quarter of $35.94
      – last dividend is slightly lower $35.54, because call date is one day less
      – called at first call date of 6/15/24

      Here are the cell inputs you use for Excel
      7/28/2021 -2800.00
      9/16/2021 35.94
      12/16/2021 35.94
      3/16/2022 35.94
      6/16/2022 35.94
      9/16/2022 35.94
      12/16/2022 35.94
      3/16/2023 35.94
      6/16/2023 35.94
      9/16/2023 35.94
      12/16/2023 35.94
      3/16/2024 35.94
      6/15/2024 35.54 (Note slightly less)
      6/15/2024 2500.00

      IRR= 1.72%

      The percentage I use is Internal Rate of Return. The Excel function is:

      =XIRR(price range, date range) If you start at the top left cell in Excel it becomes
      =XIRR(B1:B14,A1:A14)

  3. COF-H has drooped 7 cents to 25.61, but is still too high. Only 75 cents in divis left ahead of a probable Dec 1 call. Tie up your money for almost 4+ months for 14 cents per share?

    1. Some could do a tax arbitrage with likely callable issues – Say, buy COF-H here at $25.60, get $0.75 of dividend taxed at low 15/20% rate and then take a short-term loss of the $0.60 when called in Dec.

      If they do not call this one in Dec (unlikely as indeed higher than others callable soon), you can gain even more…

    2. In response to the dislike For Bob-in DE. Why have they added the like/dislike to this site? I felt this site was above the petty things such as this. Certainly adds nothing to the sharing of information when it comes to investing. Just my feelings thrown out there and I find no where to express it.

      1. William E. I too share your comment. I made a comment about many investors not really understanding valuations and have no clue what a PE even is and got 4 likes and 6 dislikes. Very petty in my opinion. Maybe some of these folks should head over to S A. I look at hiding behind the dislike button as quite childish.

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