Boring can be lucrative for dividend seekers. In fact, it can be very lucrative. Some industries naturally use their steady nature to churn out plenty of growing cash flows. Those cash flows, in turn, support rising dividends. Rinse and repeat. A prime example of this is our latest Best Dividend Capture Stocks Pick. It’s used its size and boring industry to support its shareholders with over a decade of growing payouts!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick happens to be in the so-called boring industry in question — the insurance industry. As one of the largest life insurers, annuities issuers, and group benefits managers on the planet, our pick generates plenty of cash flows from its premiums. It’s here that the insurance industry shows its hand. Those premiums generate plenty of interest. This float provides ample cash flows for shareholders and reinvestment opportunities. And with billions in assets, our pick generates plenty of float potential.
But there are reasons to choose our pick besides its float.
Our pick has plenty of growth behind it as well. This has included using M&A and divestiture to add/remove businesses, increase technology within underwriting, and enter new markets. Emerging markets have provided a tailwind for growth across a variety of channels. Meanwhile, institutional asset management has quickly grown into a profitable niche for our pick.
The combination of new growth, ample assets, float generation, and risk controls has helped our pick generate plenty of shareholder rewards since the Great Recession.
With these factors and a long operating history, our pick has continued to find investor support. As such, it has become a wonderful 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 Tuesday, February 4, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 3.0 days after going ex-dividend.
Our latest insurance play could be a lucrative option for investors looking for a quick total return of income and capital appreciation.
