Building a business around a service that other businesses need is a great way to build profits and cash flows. It’s even better when you can become the biggest player in the industry and create a huge moat. It’s what Warren Buffett looks for in the stocks he owns, and while the company is not a Buffet pick per se, our latest Best Dividend Capture Stocks List pick fits the definition of one. In that, it has been rewarding shareholders consistently for the last five years!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
The secret to our pick’s success — and how it built its wide moat — has been its business of cash handling and management. While digital solutions and payments are widely becoming the standard, businesses of all sizes still generate a lot of physical cash. Transporting, storing and depositing that cash from retail locations, rental offices and even theme parks takes plenty of muscle and security solutions. As the leading purveyor of these solutions, our pick generates plenty of its own cash and revenues.
Our pick has continued to find growth in this area as well. By buying out smaller players and expanding globally, our pick has added additional revenues to its bottom line. Moreover, our pick has been smart to look towards a digital payment future. This includes adding digital security products and even delving into the world of cryptocurrency management/solutions. At the same time, our pick has pivoted into more home security options, translating its knowledge base for cash security into protecting residencies and businesses.
The end result is that our pick generates plenty of cash flows from its core operations and has new sources of growth to produce even more cash for its shareholders.
With that potential and stability, investors have continued to take notice of our pick. This has made 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 Monday, July 29, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 2.9 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our business services pick could be a lucrative option.
