During the gold rush, the people that made the most money weren’t the miners, but the businesses that provided the picks and shovels. This fact holds true today for the producers of raw materials. Without these items, other firms – no matter which ones – can’t make money. Our latest Best Dividend Capture Stocks List pick has been exploiting this fact for decades, providing shareholders with nearly 14% annual dividend growth for the last 20 years!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick provides all the necessary ingredients to make food and other products taste good and have certain textures. These various ingredients, sweeteners, thickeners and other food-based products are used by a variety of industries, and form the basis for many food items, consumer products and household goods. The trick is in the “value add” of its business model. Our pick doesn’t just physically harvest corn, wheat or sugar cane. It takes these raw commodities and uses them to create other products that are must-have items for other producers, allowing our pick to have plenty of pricing power.
Its pricing power and steady demand for its ingredients drive plenty of cash flow for its investors. As such, our pick makes for 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, June 29, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 2.5 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest agricultural pick could be a lucrative option.
