Boring can be beautiful when it comes to investing. Those firms in profit niches that steadily churn out chase flow can be a dividend investor’s best friend. Our latest Best Dividend Capture Pick is one such example. Our company continues to be a leader in its industry. And in that position, it’s managed to pay a steadily increasing dividend for more than four decades!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick’s niche happens to be one of the most boring, yet profitable, spaces around. We’re talking about the insurance industry. Our pick is a leading player in the accident and death (A&D) insurance market. These supplemental insurance policies are designed to protect clients in the case of emergencies and hospitalizations. It’s an amazingly profitable yet simple business. And in that, our pick’s strength in underwriting has helped it to produce top results.
That strength in underwriting has been buoyed by its strong float portfolio. Thanks to rising rates, our pick has continued to generate strong returns off the interest and premiums it’s collected. Smart conservative management has avoided many of the commercial real estate blow-ups hitting other insurance and banking names.
Our pick has managed to find growth as well in its boring nature. This includes expanding into dental and vision insurance for those who don’t have coverage at work, as well as adding new traditional term no-medical exam life insurance policies to its arsenal. These policies generate high premiums for our pick and only add to its cash flows and dividend potential.
Thanks to its strong and steady nature, our pick has been a dividend champion throughout its long history. As such, investors have continued to take notice of our pick. This has made 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 Wednesday, August 21, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 3.4 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our insurance pick could be a lucrative option.
