It’s no secret that housing has been a sore spot for the economy over the last few quarters. Rising interest rates have crimped much of the enthusiasm for home buying and building. Many buyers simply haven’t been able to secure mortgages because of higher rates. But our latest Best Dividend Capture Pick List stock seems to have circumvented that issue – even seeing rising sales during this time that were enough to support its pace of dividend growth!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is a home builder; but, it’s not just a home builder – it builds luxury residences. Its focus on large square-footage, growth areas of the country like Texas, and high-end finishes has served it well throughout the years. The niche customer-base tends not to be too price sensitive and has no trouble with larger down payments and acquiring mortgages. This strategy of honing in on the high-end earner has worked well during the economic environment. Its customers have continued to thrive in the current market conditions.
The best part is that our pick has continued to find growth as well, with forays into new construction and property types expanding its reach and cash flows. This includes building new adult-living communities, campus housing, and even apartment dwellings, which has allowed it to profit from the rise of “renter nation” and diversify its cash flow stream. The best part is that these communities are also high-end, providing high margins for its bottom line. Moreover, new direct lending capabilities and sophisticated mortgages have allowed more buyers into its high-end properties.
The end all be all is that our pick continues to be a top home holder. That fact, along with its niche, 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 Thursday, January 11, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 2.6 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest home builder stock could be a lucrative option.
