Bacteria, viruses, microbes … the microscopic world can be a scary place. COVID and the pandemic reminded us all of that fact. The sanitation of water, air and surfaces is a paramount issue for the modern world — and it takes a lot of cleaning power to get the job done. For firms that provide various hygiene and sanitation services — such as our latest Best Dividend Capture Stocks List pick — it can mean decades’ worth of dividend and cash flow growth. Our pick alone has been growing its dividend for over 30 years.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
The secret to our pick’s long-term dividend growth remains its dominant position across the sanitation and hygiene services business. By far, our pick remains the largest player. Its scale and scope are the key factors in its success. Large-scale retailers, manufacturing, energy and even technology firms choose our pick over others to clean and maintain their facilities, often under long-term, multi-year contracts. It takes a big player to service other big players. This provides our pick with steady cash flows and additional cross-selling capabilities to boost margins/revenues.
The best part is, our pick has continued to find ways to grow. The COVID pandemic increased plenty of regulation and sanitation requirements for numerous industries, while our pick has expanded into more advanced sanitation areas. These days, products and services designed to clean the air inside a semiconductor factory or the water from a power plant dominate our pick’s revenues and continue to provide high margin/high growth opportunities to boost cash flows further.
And with that, our pick has become a dividend and buyback powerhouse, rewarding shareholders throughout its long history.
Investors have continued to take notice of our pick and its stability. This has made it 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, September 17, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 5.2 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our environmental services pick could be a lucrative option.
