We often don’t think about what happens to our garbage once we throw it in the bin. But as the saying goes, “One man’s trash is another man’s treasure.” Our latest Best Dividend Capture Pick has been turning trash into treasure for decades with 20 years’ worth of consecutive dividend growth. That includes a big 8.1% increase with its next payout!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick doesn’t just operate in the environmental services sector, but is one of the two largest players. Operating as a trash hauler, our pick performs the less-than-ideal task of collecting trash and recycling from residential and business customers. Everyday, more than five million customers have their trash collected by our pick. This size and scope is key for our pick. With trash collecting being a low margin business, the largest players can use scale to their advantage. This has helped our pick deliver strong earnings throughout its history.
The best part is our pick has continued to find ways to improve margins and boost its cash flows. This has included recycling efforts, organics, and moves into processing waste from the construction, agriculture, and oil & gas industries. At the same time, new forays into digital applications for customer and internal engagement have helped as well. All of this has helped our pick deliver more than $1.7 billion in free cash flow in 2022.
With its steady business model and continued growth, our pick’s steady cash flow makes for 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, September 29, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 4.8 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest environmental services pick could be a lucrative option.
