Sometimes the biggest and most consistent profits can be found in boring businesses. Those firms that specialize in must-haves for endvusers often see steady cash flows no matter the economic environment. This is very true in the industrial space and our latest Best Dividend Capture Pick is a prime example. It’s managed to turn a boring niche into steady shareholder rewards for its investors. This includes its latest 8.5% dividend increase!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick’s boring niche? Fluid management. That’s a fancy way of saying that our pick builds and sells pumps, tubes, and other needed hydraulic equipment. And it turns out that a variety of businesses need these items. Whether you are moving peanut butter into jars on an assembly line or moving jet fuel into an engine, pumps make it happen. As one of the largest players in this space, more often than not, our pick gets the call. This leads to steady sales and rising cash flows for its huge product portfolio.
The best part is that our pick has continued to find growth in this niche. Our pick has continued to use smart M&A to find strategic bolt-on transactions. Moreover, the continued advancement and high R&D dollars our pick spends have continued to pay off. As end users demand more complex products for fluid management, our pick has delivered, often with high profit margins. This has helped keep growth going for our pick and helped it deliver over 25 years’ worth of dividend increases.
That innovation along with steady profits 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 Friday, January 19, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 2.1 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest industrial stock could be a lucrative option.
