Banks have long been known for their dividend prowess. However, when investors think about banks, they tend to focus on the largest players. The idea is that their size provides a sense of safety. But the reality is that sometimes it pays to go with the small fries. The vast ecosystem of smaller regional and community banks like our latest Best Dividend Capture Stocks List’s pick can sometimes be the smartest play, offering strong growing dividends and income potential.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick may just be in the sweet spot of banking. While larger than a community bank serving a small group of consumers, it is not quite large enough to be considered a regional player, providing plenty of room to grow. Particularly, since its 200+ branches happen to be in two of America’s fastest-growing areas – Texas and Florida. These economically strong states have continued to help boost deposits and loan growth.
And speaking of growth, our pick has continued to find success via M&A and bolt-on transactions. Since its founding in 1999, our pick’s mission has been to invest and grow various community bank brands and merge them under its umbrella. So far, our pick has made 21 different buyout transactions. Done strategically, these transactions have instantly added deposits, customers and branches to its system. Moreover, the firm’s financial discipline has helped come through the recent banking crisis relatively unscathed.
The combination of a strong deposit base, growth via M&A and high insider ownership has made our pick 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 Tuesday, February 13, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 0.7 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest community banking stock could be a lucrative option.
