Investors in Capital One Financial Corp (NASDAQ:$COF) saw new options become available today, for the October 27th expiration.
Using a proprietary formula designed to combine strong fundamentals and a valuation that looks inexpensive, the DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks. Capital One Financial Corp reflects above average, in fact, it’s in the top 50% of the coverage universe. This means it’s among the top most “interesting” stocks that merit further research and attention by investors.
As of morning trading on Thursday, shares of COF entered into oversold territory, with shares as low as $77.97. The oversold territory is underlined by the Relative Strength Index, a technical analysis indicator used to measure momentum on a scale of zero to 100. To be considered oversold, the stock sees an RSI reading below 30. For Capital One, it hit 28.9.
Further, a falling stock price reflects a better opportunity for dividend investors to capture a higher yield. COF’s recent annualized dividend of 1.60 per share works out to an annual yield of 2.02%, based on the recent $79.47 share price.
What does this mean for an investor? If an investor wants to sell-to-open, they are committing to purchase the stock at $78.00 strike price, but will also collect the premium, putting the cost basis of the shares at $75.96.
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