Some financial institutions are bastions of the world’s economies. Featuring billions in assets, huge consumer deposit bases, massive loan portfolios, and large prop trading divisions, these firms form the backbone of the world’s economy. And many of these firms- like our latest Best Dividend Capture Pick- have continued to reward their shareholders via buybacks and dividend increases.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick has been a financial powerhouse since the days of the Robber Barons and has used its history, size, and scope to become one of the largest, if not THE largest, financial firms on the planet. This size and multitude of businesses allow our pick to generate billions in cash flows for its shareholders. Prudent capital management and adverse risk-taking have allowed it to prosper when other banks have struggled.
The best part is that our pick has found plenty of ways to grow as well. The firm has used M&A to grow its banking business throughout its history and is poised to make some big moves now that regulation changes are on the horizon. More recently, our pick has made a huge splash within the world of asset and investment management, creating a world-class ETF portfolio. This has quickly grown and gathered billions in assets. All while generating some top-notch fee income. A hefty dose of technology- both on the consumer and internal process sides- has also improved margins and underwriting of loans.
With its standing as a top financial firm and leading bank, investors have continued to support our pick’s shares throughout history. This has made it 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 Monday, January 6 our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 2.8 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our money center bank play could be a lucrative option.