Paying for healthcare services is a major part of the American healthcare system. Individuals and families often use various benefit managers and health insurance providers to pay for coverage – with their employers or Uncle Sam picking up part of the tab. For the firms that offer this insurance – such as our latest Best Dividend Capture Stocks List pick – it can mean a steady diet of cash flows and profits.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick happens to be one of the big four health insurance stocks that offer care to over 40 million people. The strength of that lies in its association with one of the largest benefit federations in the nation. This drives brand recognition and continues to provide sales to employers and the Federal Government. The end result for our pick is strong cash flows and a large base of assets that generate plenty of float. It’s this float that makes an insurance company a great business for shareholders.
Our pick continues to expand into new areas as well, including its specialty pharmaceutical and benefits management divisions. Offering insurance, care and specialty pharmaceuticals for chronic and rare diseases, our pick has begun to generate higher margins and cash flows. Forays into healthcare data have also helped in terms of data underwriting and providing new sources of revenue for the firm.
The end result is that our pick has managed to raise its dividend for over 10 years – even during the pandemic.
Investors have continued to take notice of this fact. Our pick’s strong position and cash flows make 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 Monday, June 10, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 6.8 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.
