Retail has only continued to get more cutthroat over the years. The combination of omnichannel shopping trends, inflation-driven price increases, and financially constrained consumers has resulted in a marketplace divided into clear winners and losers. Hundreds of retailers have closed locations and gone the way of the dodo. However, for those who have gotten it right, such as our latest Best Dividend Capture Stocks List pick, higher sales and continued profits can be had — all while rewarding investors in a big way.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is a fashion retailer. Unlike some retailers, our pick has continued to focus on on-trend and current styles. Focusing on staples like denim and offering those styles in a wide range of fits have helped it develop a client base that continues the momentum of shopping in its stores. In addition, the pick has developed its staple of brands across premium and value lines. This has helped it serve a variety of customers as money has gotten tight for many families.
At the same time, our pick has continued to grow. This includes focusing on fast-growing areas of the country, premium mall, and power center locations, and increasing its online presence. This has allowed it to increase sales steadily in the post-pandemic world. Perhaps better still is the firm’s high insider and founder ownership. This has the firm having zero debt on its balance sheet and a long history of paying a dividend.
The result is, that our pick is a strong dividend machine for income seekers.
Investors have long understood our pick’s potential as an income player. With that, it has long been 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, October 11, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 1.4 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our retail pick could be a lucrative option.
