Consumer spending on entertainment continues to be a bright spot in the economy. This includes both going out as well as staying in. Not many consumer discretionary names have the ability to straddle the line successfully. But for those that do, it can result in some hefty profits. That includes our latest Best Dividend Capture Pick, whose blend of products are perfect for both environments and has been able to grow its dividend steadily for the last three years!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick produces spirits and other adult beverages. This includes a huge stable of top wine, beer, and alcohol brands. In fact, our pick now counts two of the largest selling beer brands among its portfolio of brands. Sales of the firm’s products have been swift across all channels. This includes dining out, which has grown in the wake of the pandemic, as well as the new trend of Generation Z staying in to save money. The end result is a steady flow of cash to its bottom line and shareholders.
The best part is that our pick has continued to find growth. This includes strategically growing its brand portfolio through M&A and adding tangential products using these brands. Our pick has also dabbled in the cannabis industry, with major investments in one of the largest players in the sector. With more states now legalizing cannabis products, our pick has a long runway for growth in place.
The combination of top brands and many growth projects has helped our pick’s cash flows over the years. This has 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 Wednesday, February 7, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 5.3 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest spirit maker stock could be a lucrative option.
