With the Federal Reserve cutting rates, bond proxies have once again started to shine. Investors have been drawn to steady dividend payers like utilities for their high yields. But our last Dividend Capture pick has been drawing investors in for over 100 years, offering a steady and growing dividend. In fact, it’s managed to grow its dividend for the last decade straight.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
The secret is our pick’s dual and regional operating model. Like many regional utilities, our pick has a near monopoly on its operating area. Customers are pretty much locked into our pick’s services. And since our pick happens to operate in some strong economic regions of the fast-growing Great Lake and Midwest states, it generates a steady income. Better still is that our pick has provided both electricity and natural gas services. This means that many consumers have our pick for both areas, adding additional cash flows and steady profits.
However, our pick isn’t just a boring utility.
It’s found some great ways to grow. This includes moving into energy transportation sectors, as well as adding a dose of renewables to its energy mix. And speaking of those renewables, our pick has non-regulated business inside this area, offering recycling and end-use applications for spent turbine blades and other parts.
The result is our pick has plenty of steady growth as well as non-utility cash flows under its umbrella.
And 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 Thursday, October 31, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 0.7 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our regional utility pick could be a lucrative option.
