Home
 

InvestorGuide Stock Analysis

Capital One Slashes Dividend
Excerpt from the InvestorGuide.com Stock of the Day on 3/9/2009

Capital One announced on Monday that it will slash its quarterly dividend by 87% as a cost-cutting procedure. This cut will be implemented in the second-quarter of 2009 and will reduce the company's dividend to 5 cents a share from 37.5 cents. The company said that this cut will save around $500 million annually. Capital One has simply been added to the growing list of companies that have decided to cut quarterly dividends as each tries to conserve capital during this prolonged economic downturn. What was the motivating factor that led the company to this decision? Will this cut be enough to help the company weather the remainder of this financial storm?

The news from Capital One did not come as a big shocker. Actually, a number of analysts were expecting the annoucement after JP Morgan Chase (JPM: Charts, News, Offers) and Wells Fargo (WFC: Charts, News, Offers) reported the same course of action over the last few weeks. Financial institutions have been some of the hardest hit companies during this global economic crisis. As these companies watch competitors and similar institutions crumble around them, they are pulling out all the stops to ensure that they do not meet the same fate. One of the main factors contributing to the company's decision was an increase in the amount of credit card losses. With job losses skyrocketing and consumers' income being reduced, the amount of delinquent accounts is surging at the company. During these tough times, consumers are either maxing out credit cards to pay for basic necessities or not paying on debt so that they can pay for housing, food, etc. The company knew that this would be an issue, but they did not think that it would take this long for the economy to rebound and consumers to get back on their feet. More >


Subscribe to the Stock of the Day!
 

Add to tracker

InvestorGuide Stock of the Day RSS feed

RSS
Capital One Financial's Woes Force Cut in Profit Forecast
Excerpt from the InvestorGuide.com Stock of the Day on 1/10/2008

Capital One Financial joined the ranks of its cohorts in the credit and lending industry today with news that the continuing troubles facing these institutions have created drastic losses over the past year. These losses have now forced Capital One to slash its previous earnings forecast for 2007 which further adds to the air of uncertainty as investors anxiously await the release of the most recent quarter's corporate earnings statements. Capital One has been shifting its focus to retail banking, but are they really safeguarded as troubles in subprime lending eke their way into other credit classes? More >

Capital One Announces $14.6bn Acquisition of North Fork
Excerpt from the InvestorGuide.com Stock of the Day on 3/13/2006

North Fork Bancorp (NFB: Charts, News, Offers) became the second acquisition of a regional bank by Capital One in the past few months. You may remember the $5bn deal for New Orleans-based Hibernia in November of last year. Executives of the company feel that this move gives them the level of diversification that has become necessary in the credit card industry. But some analysts feel the move may have come too soon after their most recent large acquisition. What does this deal mean for Capital One? And will this come to be known as the signal that sparked additional consolidation in the regional banking industry? More >

Capital One Financial (COF) Upgrades

Date
Analyst
Old Rating
New Rating
09/16/2009
An analyst at Sandler O'Neill
Sell
Hold this morning
09/09/2009
Citi
Hold
Buy
09/02/2009
Sterne Agee
Sell
Neutral
08/24/2009
Barclays Capital
Equalweight
Overweight
07/15/2009
Intra-Day, Jefferies
Hold
Buy
05/07/2009
Goldman Sachs
Neutral
Buy

Capital One Financial (COF) Downgrades

Date
Analyst
Old Rating
New Rating
09/15/2009
Calyon Securities
Outperform
Underperform
05/11/2009
Davenport
Buy
Neutral
04/20/2009
Goldman Sachs
Buy
Neutral
04/16/2009
Sandler O'Neill
Hold
Sell
04/14/2009
Stifel Nicolaus
Buy
Hold
04/13/2009
Calyon Securities
Buy
Underperform

Capital One Financial (COF) New Coverage

Date
Analyst
Rating
10/05/2009
Ameriprise
Buy
08/10/2009
Ladenburg Thalmann
Buy
06/04/2009
Sterne Agee
Sell
05/12/2009
RBC
Sector Perform
12/17/2008
SunTrust
Neutral
12/12/2008
Deutsche Bank
Sell
Get Analysis For: