Heating and cooling our spaces is one of the most cost- and energy-inefficient processes in the modern era. In the United States alone, more than 39% of our total energy demands go toward climate control solutions for buildings and other structures. To that end, property owners and governments have and are currently spending some big bucks to retrofit and improve energy efficiency. For firms like our latest Best Dividend Capture Pick, these retro- and energy- efficient-focused dollars have continued to support hefty cash flows and dividend growth.
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Our pick happens to be one of the largest players in the residential and commercial heating, ventilation, and air conditioning (HVAC) market. Its catalog spans a variety of products used to heat and cool buildings. This includes a hefty dose of energy-efficient products. As property owners continued to look for ways to reduce costs and score LEED certification, our pick has realized plenty of sales growth.
Our pick has continued to boost growth in other ways as well. This includes a hefty dose of new smart and artificial intelligence-driven HVAC products. These automation products come with higher margins and have boosted profits. Meanwhile, in the post-COVID world, business and property owners have stepped up their demand for air ventilation and filtration systems. Finally, our pick has continued to focus on climate solutions by selling tangential businesses. This has provided plenty of cash to pay down debt and enhance buybacks.
The end result is that our pick has quickly become a powerful dividend player.
Investors have continued to take notice of this fact. Our pick’s leadership position in its sector and continued energy efficiency demand make 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 Friday, June 21, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 0.9 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest climate solutions pick could be a lucrative option.
