There are banks. Then there are banks. Some institutions are cornerstones of the modern financial sector, with billions in assets and their hands in a variety of different banking functions. These are the so-called money-centered banks. They, including our latest Best Dividend Capture Pick, manage to produce billions in cash flows and have long supported their shareholders with plenty of dividend rewards and share buybacks.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
While our pick has its origins stemming back to the 1800s, its modern form was created during the early days of de-regulation in the late 1990s. Since then, the firm has grown across a variety of banking channels to include retail and commercial banking, wealth management, and credit. These days, it holds more than $2 trillion in assets.
Our pick has found growth, not in expansion, but by slimming down. Essentially jettisoning the diversified model it pioneered, our pick has begun to sell off and reduce its operations. By only focusing on several profitable channels, our pick is starting to emerge from its rivals’ shadows. These days, investment banking and securities services are the focus while traditional banking is taking a back seat. This has improved profit margins at the bank.
It’s also helped on the dividend front as well. Our pick continues to pass various stress tests and has been allowed to return its excess cash to shareholders. Its latest increase was over 5%.
With this size and newfound focus on profitable operations, investors have continued to take notice of our pick. This has made it 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, August 5, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 5.4 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our money-centered bank pick could be a lucrative option.
