Capital One Financial Corp. said Monday it has cut its quarterly dividend 87%, to 5 cents a share, to save $500 million a year.

As the McLean, Va., company faces "unprecedented economic and market conditions," its highest priority is "managing our balance sheet to maintain its considerable strength and resilience," said Richard D. Fairbank, its chairman and chief executive. Investors have indicated "they value strong capital positions over dividend streams at this point in the cycle."

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