These days, it’s all about pricing power. With inflation rising, firms with the ability to raise prices in order to cope with higher costs are in hot demand. And that includes the latest pick for our Best Dividend Capture Stocks List.
Our pick is one of the largest confectioners on the planet with a huge stable of well-known brands across many categories. This simple luxury category of consumer products allows for our pick to steadily raise prices and produce better margins than other firms in its sector. The added bonus is that its products have only become more popular as the pandemic caused a permanent surge in at-home baking, snacking and cooking. As a result, our pick now features nearly inelastic demand.
Because of this, 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 Thursday, February 17, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 3.1 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest consumer staples 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.
