Capital One Financial (NYSE:COF) shareholders have earned a 13% CAGR over the last five years

Capital One Financial Corporation (NYSE:COF) has delivered impressive returns to its shareholders over the past five years. The company’s total shareholder return (TSR) has yielded a compound annual growth rate (CAGR) of 13%, significantly outperforming the market average. This TSR incorporates the value of dividends, which have played a crucial role in boosting the overall return.

Despite the strong TSR, the company’s share price has grown at a slightly lower rate of 12% annually over the same period. This indicates that the dividend payments have contributed significantly to the total return. The EPS growth has been relatively stable, with a compound annual growth rate of 10% over five years, which is close to the share price growth.

Investors have also benefited from the company’s revenue growth, which has increased at a compound rate of 6.9% over the past five years. This growth in revenue suggests that the company is prioritizing expansion over immediate earnings, which may impact the short-term earnings per share (EPS) but supports long-term growth.

The company’s fundamentals have shown improvement over the last three years, with EPS growth of 41% annually. This strong EPS growth has been reflected in the share price, which has increased by 12% annually over the same period. The P/E ratio of 7.52 indicates that the market has a relatively negative sentiment towards the stock, which could present an opportunity for long-term investors.

Overall, Capital One Financial’s performance has been driven by a combination of strong revenue growth, stable EPS growth, and significant dividend payments. These factors have contributed to a robust TSR, making it an attractive investment option for those looking to build a long-term portfolio.

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