With consumers clamping down and worries about the labor market/economy starting to mount, a smooth and steady plan might be best for portfolios. And you can’t get any steadier than the consumer staples sector. No matter what the economy is doing, consumers still need to wash their laundry and brush their teeth. This fact has made our latest Best Dividend Capture pick a wonderful portfolio addition for decades, providing steady cash flows and dividend growth!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is one of the largest consumer products firms on the planet. Its product catalog spans top brands across the personal and household care markets. The secret to its success has been its focus on the middle market. Eschewing value products with low margins or high-end ones with fickle consumer bases, our pick has continued to generate steady profits from its stable of brands. Even during the current period of high inflation, our pick is successfully pushing price increases onto its middle market consumer base.
As steady as the consumer staple sector is, our pick has continued to grow as well. This includes a successful move into the pet care business. Consumers have continued to spend big on their pets despite rising pricing pressures. Additionally, our pick has recently made moves into the mid-to-high skincare market. Thanks to several buyouts, our pick’s new products have quickly become favorites among estheticians and dermatologists, boosting sales and margins. Finally, our pick has worked on redesigning and becoming green with its packaging choice, providing lower costs and an ESG boost to its bottom line.
The result is that our pick has only strengthened its dividend prowess and stability in the very steadfast sector.
With that stability, investors have continued to take notice of our pick, making 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 Friday, July 19, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 0.7 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our consumer staples pick could be a lucrative option.
