There’s a long-standing joke about Dad’s always touching the thermostat. But maybe Dad was onto something. Heating and cooling a building is a huge cost. That’s why property and facility managers spend big bucks trying to retrofit and reduce their energy expenditures. For stocks like our Best Dividend Capture Stocks List pick, this fact drives cash flows and dividend increases. Our new pick has raised its payout every year since its spin-off.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Both under its former parents’ wing and on its own, our pick happens to be one of the largest players in the residential and commercial heating, ventilation, and air conditioning (HVAC) market. Its catalog spans a variety of services used to heat and cool buildings, including a hefty dose of energy-efficient products. As property owners continue to look for ways to reduce costs and score LEED certification, our pick has realized plenty of sales growth.
While air conditioning and heating may seem like boring businesses, our pick has continued to find plenty of growth as well. This includes pruning itself of legacy holdings and turning its focus to the HVAC marketplace. Moreover, our pick has continued to move into new high-tech areas such as building automation and transportation cooling. Onshoring and the rise of e-commerce and omnichannel supply chains mean moving goods — including perishables — all over the country. This has provided a sharp upswing in earnings.
The result is that our pick provides a great base of stability as well as plenty of growth potential for income seekers.
And with that, investors have continued to support shares of our pick and it’s 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 Friday, October 25, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 1.0 day after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our industrial HVAC pick could be a lucrative option.
