Everyone knows that the people who got rich during the gold rush weren’t the prospectors but the ones who sold all the necessary gear needed to mine for gold. “Picks & shovels” remains one of the best business models around, helping to drive plenty of profits and cash flow for investors who follow the model. This includes our latest Best Dividend Capture Stocks List pick and its 2.23% dividend yield!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
On the surface, our pick may not seem exciting as it is, afterall, a maker of apparel. And t-shirts, shorts and hoodies may not seem like growth products. The key is that our pick makes these products in a variety of colors and styles, void of any finishings. It’s here that other branded apparel firms, crafters and small businesses use the blank canvases to create their own designs.
What separates our firm from its rivals is its size and vertically integrated model. Our pick’s 30 facilities take raw cotton and other materials, make yarn and proceed to knit its products. This allows it to control its supply chain and reduce costs. These facilities – in places like Honduras and Haiti – also feature low-cost wages below many Chinese manufacturers and are politically neutral. The end result is that our pick has continued to see steady rising margins.
Growth at our pick can be found in a variety of channels. The firm has continued to expand its own brands of apparel, while new environmentally friendly and athletic fabrics dot its catalog. Moreover, the firm has increased its web and app presence for large customers. Finally, the surge in small online craft stores has been a boon to sales.
For investors, our pick’s dominate niche, high insider ownership and vertically integrated model produces plenty of cash flow. This fact has also made our pick 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 Tuesday, November 21, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 1.4 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest apparel pick could be a lucrative option.
