While the COVID-19 pandemic may now seem like a distant memory, it has had long-lasting effects on the way we conduct business, shop and play. The pandemic brought significant structural changes to the economy, particularly in the supply chain. It shifted everything about the global logistics system. For companies operating within this industry, such as our latest Best Dividend Capture Stocks List pick, this has created new revenue sources and increased profits.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick operates one of the world’s largest logistics networks, shipping billions of dollars’ worth of goods and other materials each day. This includes everything from packages from e-commerce retailers to business-to-business shipments. Our pick’s moat lies within its scale. Its huge network of warehouses, trucks, planes, train cars and other logistics facilities is impossible to replicate, with only a small handful of rivals coming even close to our pick’s scale. This provides it with plenty of cash flows and profits for its investors.
Our firm isn’t just a one-trick pony, however. It’s managed to find growth across several channels. Rising online sales and last-mile delivery services have increased revenues, while new forays into onshoring have boosted margins. A recent shift towards courting small businesses has also helped with margins. At the same time, our pick has continued to leverage its network to launch new data services for firms to help manage their logistics and supply chain needs. This has provided additional growth to its bottom line.
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, December 9, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 1.9 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our logistics pick could be a lucrative option.
