If there is one word driving the market these days it has to be artificial intelligence. The promise of AI to change business processes, drive cost savings, and create new markets is great. But there is also a lot of hype associated with the trend. For firms that are using AI right — like our latest Best Dividend Capture Stocks List pick — it can lead to plenty of long-term growth and dividends for their shareholders.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is unique within the AI ecosystem. At its core, the stock has been an information technology services firm. Other companies depend on our pick when they need to build out their IT infrastructure, design new processes, or improve their current technology stacks. This leads to plenty of one-time and recurring service revenues for our pick. That fact alone has made our pick a dividend superstar since its spin-off and founding in the 1990s.
The win is that our pick was early in designing and using generative AI models in its software and processes. These proprietary products are paying big benefits as more firms look to use AI in their own business. This has added plenty of cash flows to our pick’s bottom line. It has also been smart in using those cash flows to reward investors and make smart buyouts, including an expansion into healthcare IT, machine learning/IIoT applications, and utility smart-grid management software. These are all fast-growing businesses, and our pick has benefited.
So have investors with a strong 5-year dividend streak. As such, 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 Tuesday, November 19, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 6.6 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our IT provider pick could be a lucrative option.
