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Capital One Financial (COF)

Capital One Financial Corporation (COF) offers a range of financial products and services to consumers, small businesses and commercial clients through branches, the Internet and other distribution channels, and operates three primary business segments: Credit Card, Consumer Banking and Commercial Banking.

Consensus estimates call for the company to earn about $7.54 per share this year, up from $7.15 per share in 2015, and to go to net about $8.18 per share in 2017. Capital One has paid dividends to investors since 1995, and has increased its payments for 3 consecutive years.

During those last 3 years it has increased its dividends at an average rate of 66%.

Its Price to Earnings ratio (a measure of valuation) of 8.7 is 44.2% below its industry average, its Price to Book ratio of 0.6 is 77.8% below its industry average and its Price to Sales ratio of 1.3 is 58.0% below its industry average.

According to Morningstar, the stock is trading 34.9% below its Fair Value Estimate, making it very attractive for long-term investors.

Technically, COF also looks attractive, trading 32.8% below its 52 weeks high, while it is forming a price consolidation pattern between $58 and $92.

Vita Nelson, www.directinvesting.com, 914-925-0022, June 30, 2016

Ms. Nelson began her career as a “market-maker” in municipal bonds at Granger & Company and other brokerage houses in NYC. She was a founder, editor, and publisher of Westchester magazine, the first regional magazine in the Eastern US. A graduate of Boston University, she is currently editor and publisher of Moneypaper’s Guide to Direct Investment Plans, Chairman of the Board of Temper of the Times Investor Services (a DRIP enrollment service), co-manager of the MP 63 Fund (DRIPX), and responsible for the contents of www.directinvesting.com.