If there’s one sector consumers have continued to spend money in despite inflationary woes, it has to be travel. People are still focusing their attention post-Covid on entertainment, experiences and getting out into the real world. For those that operate in the travel and leisure industry it’s been manna from heaven. Our latest Best Dividend Capture stock is a prime example, providing investors with a 9.37% dividend boost at the beginning of the year.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is one of the largest hoteliers on the planet – with more than 9,000 hotels and 850,000 rooms in its system. The key for our pick is its asset-light model. Our pick doesn’t actually own many physical hotels, but rather operates as a franchiser of various hotel brands. Moreover, these brands tend to focus on the value and mid-tier customers. These consumers have continued to spend on weekends and “bleisure” trips and experiences. This boosted our pick’s earnings and cash flow.
Better still, our hotel pick has continued to find new ways to grow. This includes smart M&A, expanding into more luxury and destination hotels as well as new eco-friendly brands. All while travel demand from both business and consumers continues to expand past pre-pandemic figures. Adding in lower rates of inflation and you have a recipe for success.
With that, our pick’s asset light model and future potential has continued to make it a top dividend stock. 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 Tuesday, September 12, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 5.2 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest hotel and lodging pick could be a lucrative option.
