Explore Capital One Financial Corp's dividend sustainability and growth
Capital One Financial Corp (NYSE:COF) recently announced a dividend of $0.6 per share, payable on May 24, 2024, with an ex-dividend date of May 10, 2024. The company's dividend history, yield, and growth rate are also in focus as investors look forward to future payouts. Let's examine Capital One Financial Corp's dividend history and assess its sustainability using data from GuruFocus.
What does Capital One Financial Corp do?
Capital One is a diversified financial services holding company headquartered in McLean, Virginia. The company was originally formed in 1994 as a spin-off from the credit card division of Signet Financial, and today is primarily involved in credit card lending, auto loans, and commercial lending.
A glimpse of Capital One Financial Corp's dividend history
Capital One Financial Corp has maintained a consistent dividend payment record since 1995. Dividends are currently distributed on a quarterly basis. Below is a graph showing annual dividends per share to track historical trends.
Analyzing Capital One Financial Corp's dividend yield and growth rate
As of today, Capital One Financial Corp's 12-month forward dividend yield is 1.69% and the 12-month forward dividend yield is 1.69%. This suggests that the same dividend payments are expected over the next 12 months.
Over the past three years, Capital One Financial Corp's annual dividend growth rate was 33.90%. When extended to a five-year period, this rate decreased to 11.90% per year. Capital One Financial Corp's annual dividend growth rate per share over the past 10 years is 6.90%.
Based on Capital One Financial Corp's dividend yield and 5-year growth rate, Capital One Financial Corp stock has a 5-year cost yield of approximately 2.97% as of today.
Questions about sustainability: Dividend payout ratio and profitability
To assess dividend sustainability, you need to evaluate a company's payout ratio. Dividend payout ratio helps determine the proportion of a company's profits that it distributes as dividends. A low ratio indicates that the company is retaining a significant portion of its earnings, thereby ensuring that it has funds for future growth or unexpected economic downturns. As of March 31, 2024, Capital One Financial Corp's dividend payout ratio is 0.18.
Capital One Financial Corp's Profitability Rank helps you understand the company's earning power compared to its peers. GuruFocus ranks Capital One Financial Corp's profitability with his score of 7 out of 10 as of March 31, 2024, suggesting a positive profitability outlook. The company has reported positive net income every year for the past 10 years, further cementing its strong profitability.
Growth indicators: future outlook
To ensure dividend sustainability, companies must have solid growth metrics. Capital One Financial Corp's Growth Rank of 7 out of 10 suggests that the company's growth trajectory is favorable compared to its competitors.
Earnings are the lifeblood of any company, and Capital One Financial Corp's earnings per share, combined with its three-year earnings growth rate, point to a strong earnings model. Capital One Financial Corp's revenue has grown on average at around 15.60% per year, which is higher than around 67.34% of its global competitors.
The company's three-year EPS growth rate indicates its ability to grow earnings, which is a key factor in maintaining a dividend over the long term. Over the past three years, Capital One Financial Corp's revenue has grown by an average of about 33.70% per year. This is higher than about 77.04% of its global competitors.
Finally, the company’s 5-year EBITDA Growth rate is 11.40%, which is higher than around 63.36% of its global competitors.
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In conclusion, Capital One Financial Corp's consistent dividend payments, solid dividend growth rate, manageable payout ratio, strong profitability, and solid growth metrics paint a promising picture for current and potential investors. I am. These factors not only support the company's financial health, but also support the company's ability to maintain and increase its dividend in the future. For investors looking to expand their portfolio with high dividend yield stocks, GuruFocus Premium offers the High Dividend Yield Screener.
This article created by GuruFocus is intended to provide general insight and is not intended as financial advice. Our commentary is based on historical data and analyst forecasts using an unbiased methodology and is not intended to serve as specific investment guidance. It does not constitute a recommendation to buy or sell stocks, and does not take into account your individual investment objectives or financial situation. Our objective is to provide fundamental data-driven analysis over time. Please note that our analysis may not incorporate the latest announcements or qualitative information from price-sensitive companies. GuruFocus has no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
