Retail has always been a tough business in which to operate, but nowadays it has gotten even more difficult. High inflation, changes in consumer tastes, and the birth of omnichannel have only added additional pressure to retailers and their bottom lines. Many have continued to wax and wane during these times. But for those that get it right – like our latest Best Dividend Capture Pick – it means a steady stream of cash flows and rising dividend payments!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
The secret to our pick’s success remains its differentiated business model. Unlike most retailers, you need to be a member to even walk into one of its many locations. This exclusivity has created a cult-like status among its shoppers. It also helps drive repeat sales. Speaking of our selection’s merchandise, our pick has a mix of products that includes staples as well as unique limited finds, helping to boost the revenue for our pick.
Our pick has been able to find plenty of growth as well. Thanks to its commitment to discounting, our pick has continued to see rising revenues despite the high inflationary environment. Meanwhile, many product producers continue to partner with our pick to make “exclusive” items, flavors and scents. Again, this helps to boost sales. Finally, a focus on automation and technology has continued to reduce our pick’s costs while boosting margins.
All of these things have continued to make our pick an income and cash flow machine.
The combination of these factors has helped propel our pick’s dividend over the long haul. With that, it has become 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 Thursday, April 25, 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 retail stock could be a lucrative option.
