Often, investors forget about the smaller community and regional banks when looking at the financial industry. But it’s here investors can often find strong growing firms with steady cash flows. As the heartbeats of their communities, these banks—such as our latest Best Dividend Capture Pick—provide loans and services to make these regions grow. Without many of these community banks, America’s ‘real’ economy wouldn’t exist.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is a prime example of this. Launched in 1894, our pick has supported its operating region of Wisconsin for decades. While its footprint may be small, our pick has continued to grow and holds nearly $5 billion in assets. It’s pretty impressive considering its small size. But with plenty of sticky deposits, small and medium-sized business loans, and fiscal conservatism, our pick has grown into a community powerhouse.
The best part is that our pick has found plenty of growth as well. This has included a history of M&A and de novo branch expansion, new forays into insurance services, and a healthy dose of modernization. These factors have continued to help grow revenue and margins at the community bank. Moreover, as a strong community bank, our pick has enjoyed a ‘buy-out’ premium as well. Often, community banks are seen as fodder for larger regionals looking to expand their footprints and grow.
With these factors in tow, investors have looked toward our community bank as 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, 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 7.3 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our community bank could be a lucrative option.
