Despite the dips in inflation, prices are still high for a variety of goods. In that, many consumers have continued to look for deals. Retailers operating on the value spectrum have seen sales rise with the return to normal inflation levels versus retailers that operate in more expensive areas. For value retailers, it means plenty of profits and shareholder rewards — this includes our latest Best Dividend Capture Stocks List pick. Our pick has continued to profit as value-conscious consumers reign supreme.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Where our pick plays into value is in a hot area of the market: footwear. Sneakers and shoes remain a popular accessory for both adults and children. However, with the latest pair of kicks potentially costing $500 or more, many consumers have had to look elsewhere for their shoes — and that’s where our pick comes in. Offering closeout, last year’s styles, private label brands, and partnerships with leading footwear makers, our pick has managed to offer discounts on a variety of sneakers and shoes. The key is in its business model of “here today, gone tomorrow” scarcity. Consumers feel compelled to buy.
And while footwear may seem like a low-growth segment of the market, our pick has continued to find growth. This includes buying out smaller rivals, expanding into other tangential, higher-margined accessories and adding new top brands under its umbrella.
The end result is that our pick has plenty of growth and cash flows behind it.
Investors have taken notice of this fact and its ability to generate hefty cash flows, supporting its dividend. With that, it has become 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 Monday, October 7, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 4.5 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.
