The Dividend Daily

Analysts at Oppenheimer believe that Capital One Financial Corp. (COF) is a compelling stock. Though the stock has been the worst performing in its sector, the analysts see that its current valuation has potential upside. As such, Oppenheimer maintained a bullish rating on the financial services company.

The analysts maintain an “Outperform” rating on COF and see shares reaching $68. This target suggests a 27% upside to Tuesday’s closing price of $53.64.

“While the past few months have indeed been trying for shareholders, we still find a lot to like in the stock. COF’s is a nicely granular business with clearly visible earnings drivers. Even with the reduced earnings expectations, consensus ROTCE would still be 17% in 2012, not bad in a low-rate, slow-growth environment,” an Oppenheimer analyst said.

Capital One shares were up a fraction during Wednesday morning trading. The stock is down -2.5% over the past year.

The Bottom Line
Shares of Capital One (COF) have a dividend yield of 2.23% based on Wednesday’s intraday trading price of $53.85 and the company’s annualized dividend payout of $1.20 per share.

Capital One Financial Corp. (COF) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.