Regional banks rise and fall based on their operating areas. Those that operate in strong, economically diverse areas are able to grow, build their deposit bases and make smart loans/investment decisions. And when a bank has a near monopoly in one of these areas, it leads to plenty of dividend growth and stability. Just ask the investors in our latest Best Dividend Capture Stocks List pick!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is the oldest and largest financial institution in Hawaii. Founded before Hawaii was established as a state, the bank has a long history of providing financial services for citizens on its chain of islands. Since then, our pick has used its size to grow by acquiring many of its smaller rivals. This has made it the ipso facto banking institution in the state. Given Hawaii’s overall high barriers to entry, this is a good place for the bank to be in.
It’s also a good place for investors to be in as well. With its near-monopoly on banking in the state, our pick makes for 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 Thursday, February 16, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 0.8 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest regional banking pick could be a lucrative option.
