We tend to lump all banks into the same general category. However, there is plenty of minutia to the industry. Not all banks are alike or target the same kind of customers. In that, they can profit in their niches. A prime example is our latest Best Dividend Capture Stocks List pick, which has been working its niche since 1907. You can grab the stock before Friday, December 23, when it goes ex-dividend and raises its quarterly dividend by nearly 8% to $0.55 per share!
Our pick is a so-called commercial bank. That is, it provides loans for the purpose of consumption and investment to make profits. Business and commercial banking comes with a diverse set of fees, margins and differentiating factors that can produce hefty profits and cash flow. Even better is that our pick’s major area of operation happens to be Boston and the surrounding metro-area of Massachusetts. This hotbed of economic activity continues to drive deposit and loan growth.
The end result is that our pick is also 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, December 23, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of two days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest banking pick could be a lucrative option.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
