Capital One (NYSE: COF) to Redeem $1B in Series M Preferred Stock on September 1

Capital One Financial Corporation (NYSE: COF) announced on August 20, 2026 that it will fully redeem all outstanding shares of its Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series M, on September 1, 2026. The redemption covers one million shares at a price of $1,000 per share, implying a total redemption payment of $1 billion to holders.

Redemption Terms

• Redemption price: $1,000 per share for all one million outstanding Series M Preferred Stock shares (CUSIP: 14040HCF0)
• Dividend payment: A separate regular dividend of $9.875 per share will be paid on September 1, 2026, to holders of record as of August 17, 2026
• Dividend accrual: All dividends on the Series M Preferred Stock will cease to accrue on and after the September 1 redemption date
• Settlement agent: Computershare Trust Company, N.A. will process payment to The Depository Trust Company as redemption agent
• Redemption agent address: Computershare Trust Company, N.A., Attn: Corporate Actions, 150 Royall St., Canton, MA 02021

Why It Matters

The full redemption of the Series M Preferred Stock reduces a layer of Capital One's non-common capital structure. Fixed Rate Reset preferred instruments carry periodic dividend obligations; retiring the series eliminates the $9.875-per-share dividend obligation on one million shares going forward, removing an annual preferred dividend cost from the company's capital stack.

Capital One, which holds $484.3 billion in deposits and $673.8 billion in total assets as of June 30, 2026, has the balance sheet scale to absorb the $1 billion redemption. With $56.64 billion in total cash on hand, the repayment represents a manageable deployment of liquidity toward simplifying the liability side of the balance sheet.

Wall Street View

Analyst sentiment on Capital One remains constructive. As of August 1, 2026, the consensus stood at 8 Strong Buy, 16 Buy, and 5 Hold ratings, with no Sell or Strong Sell recommendations recorded among the covering firms.

Investor Takeaway

The Series M redemption is a deliberate capital management action that retires a fixed-cost preferred obligation, modestly improving the simplicity of Capital One's capital structure ahead of any future financing decisions. Shares fell -3.74% on Thursday, August 20, 2026, while the S&P 500 declined -0.84%. Investors focused on preferred capital structure should note that once the September 1 redemption is complete, the Series M dividend obligation of $9.875 per share annually on one million shares will no longer appear on the company's preferred dividend ledger.