Often, opportunities can be found in sectors that are experiencing troubles, downturns or other issues. Values can emerge from the pain points. Right now, those opportunities could be among the financial sector. Worries about commercial real estate loans and rising consumer debt have pushed many stocks within the sector lower. But for those successful firms, such as out latest Best Dividend Capture Stocks List pick, there could be plenty of growth and dividend opportunities for their shareholders.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our latest pick finds itself right in the middle of one of the worst and hardest hit sectors of them all: the regional banks. But as many of its rivals have suffered, our pick has continued to grow, using the downturn to expand and increase in size. The key to this expansion and stability remains its operating area. Our pick is one of the largest regional banks in New England. With its operating area covering Greater Boston, eastern Massachusetts, southern and coastal New Hampshire, Rhode Island and Connecticut, our pick has prospered due to the region’s high incomes, high savings rates and general affluence. This has led to top net interest margins, top performing commercial loans and overall success. A conservative management team hasn’t hurt either.
The best part is that our pick has continued to grow as well. Over its 200-year history, our pick has used right-timed and smart M&A to grow in size. This includes its latest acquisition, which added one of the region’s largest private banks and wealth managers. This purchase will only serve to add additional high-net-worth clients to its base as well as to boost margins. Additional investments in technology have paid off as well, boosting margins and reducing costs for the bank.
With that, our new pick continues to throw off plenty of cash flows, and it shares those cash flows with its shareholders with steady dividends since its current form was created prior to the pandemic.
With that, investors have continued to take notice of our pick and its stability. 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 Tuesday, September 3, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 2.6 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our regional bank pick could be a lucrative option.
