Heading into 2023, there are still a lot of geopolitical worries out there. Overall global tensions continue to smolder, while Russia’s invasion of Ukraine has been going on for nearly a year. As such, defense has become a good offense for portfolios, with our latest Best Dividend Capture Stocks List pick being one of the best.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is one of the largest defense contractors in the world, providing shipbuilding, aerospace and weapons systems capabilities. With its niche and strong position, our pick has become one of the preferred suppliers for the United States and our NATO allies. And thanks to rising defense budgets, our pick has seen its backlog and revenues surge.
With Uncle Sam cutting the checks, our pick’s cash flow is as steady as can be, making 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 Thursday, January 19, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 2.2 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest aerospace pick could be a lucrative option.
