For millions of Americans, paying for their healthcare needs falls to the various insurance agencies and providers. It’s a complex system. For those firms that do it right, through underwriting and investment, it can be a very profitable niche. Our latest Best Dividend Capture Pick just so happens to be one of those firms. Thanks to its size and status within the industry, our pick has been able to guide itself to years’ worth of profits and dividend increases!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick has used smart M&A throughout the years to become one of the largest health insurers and benefit management providers on the planet. This includes millions of customers across federal/state, enterprise, and private pay channels. The combination provides plenty of premiums for our pick to feast on while it waits to pay out claims. That’s the win of insurance companies. This float and interest on it is pure gravy for the insurance firm and scale plays a huge role in increasing its assets and cash flows.
Our pick has been smart with its strategic moves as well. A recent divestiture of Medicare-focused assets has kept it out of the firing line of the Biden Administration and new moves to curb price gouging. While other major health insurers have recently started to suffer, our pick has been strong. This plus moves into tech and healthcare data have added more margins to its revenues. The end result is a strong dividend.
Investors have taken notice as well. Our pick’s combination of attributes 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, June 4, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 5.4 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest health insurance pick could be a lucrative option.
