When people think of real estate, their minds go directly to apartment complexes, shopping malls or office buildings. There are, however, a wide variety of other property types out there — all providing plenty of cash flows and rent income. And thanks to the so-called IRS private letter rulings, some interesting assets can now get classified as “property.” Our latest Best Dividend Capture Stocks List pick happens to operate in this gray area to much dividend success.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is one of the largest owners of billboards, digital signage and other physical advertising infrastructure in the country. It turns out that renting space on a billboard is just like renting an apartment in the eyes of the IRS. Because of this, our pick was able to become a REIT for its tax structure, passing on its cash flows as dividends in exchange for lower corporate tax rates. And thanks to steady demand and the ability to offer monthly leases for its space, our pick has made the most of rising demand.
Investors shouldn’t worry about the decline of roadside billboard advertising — our pick has been able to find growth through charging rent to telecoms to hold their 5G devices as well as new digital signage options. Pay-via-time advertising models have expanded its cash flows. Moreover, our pick has continued to expand into tech, using new A.I.-linked billboards/signage and user-based direct advertising to generate new sources of high-margined revenues.
The end result is that our pick features plenty of cash flows and dividend power.
Investors have continued to take notice of this fact. Our pick’s strong position in its sector and continued demand make it a great dividend capture play. A dividend capture strategy involves buying a stock before its ex-dividend date and then selling it after it has recovered the payout. With an ex-dividend date of Monday, June 17 our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 16 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest advertising pick could be a lucrative option.
