Behind-the-scenes plays are often some of the steadiest. Filling important niches and must-haves can produce plenty of cash flows. And in turn, these cash flows can reward investors for decades with rich dividends. Our latest Best Dividend Capture Stocks List pick is a prime example of this — paying dividends since the 1920s and increasing its payout for the last 30 years straight.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick’s behind-the-scenes niche is fluid management. A variety of industrial, commercial, and after-market processes require the handling of various fluids to function. Our pick builds all the pumps, hydraulics, sprayers, and dispensing equipment needed to make these processes work. While that may not seem like a booming business, it takes a lot of know-how and specialization to get the job done right — and our pick has been doing that for decades.
At the same time, our pick has continued to find growth within its specialty. This includes buying out smaller rivals to gain market share or entering new fluid management areas. Additionally, the firm has continued to advance its technology by adding software and various platform-based tools to its arsenal. These Industrial Internet of Things (IIoT) applications have boosted margins as well as the firm’s dividend prowess. Adding additional growth has been the return of onshoring and new industrial expansion across the U.S.
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 Monday, October 21, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 2.1 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our industrial pick could be a lucrative option.
