When we think of bank stocks, we tend to focus either on the monster-sized or the regional players. But there are numerous community banks that offer plenty of high dividends, cash flows, a strong deposit basis and great loan growth from which to choose. In many cases, these smaller community banks can – and do – provide better returns than the big boys. And that includes the latest prospect on our Best Dividend Capture Stocks List.
Our pick is one of the largest community banks in the metro Washington, D.C., area. With branches in Maryland, Virginia and D.C., our pick features an affluent customer base, which has continued to provide it with plenty of deposits. And it continues to use these assets to its advantage, specializing in commercial loans and mortgages.
That niche is incredibly lucrative, and our pick has a long history of profits as well as dividend payout growth.
It’s no wonder it is 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 January 18, 2022, our pick is primed for the strategy, as is evident from its historical track record of recovering 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 has the potential to give you what you need.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
