The consumer staple sector is known for one thing: stability. Providing products that everyone needs on a daily basis may seem unsexy or even boring. But it’s the stability of sales and demand that makes the sector a top place for dividend hunters to tread. After all, no matter what the economic conditions, we still need to wash our clothes and brush our teeth. It’s this stability that has helped our latest Best Dividend Capture Pick to increase its dividend for the 62nd time!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is one of the largest household and personal care products firms on the planet. Its product portfolio spans everything from body wash and toothpaste to fabric softener and household cleaners. The secret remains its focus on the consumer sweet spot. By offering products that straddle the line between value and premium price points, our pick has been able to court the most consumers. Better still, it’s able to keep them during good times and bad. Continued tangential branding into other points along the value chain has helped keep consumers during this time of high inflation. Organic growth managed to increase by over 8% last year!
But as steady as our pick is, it has plenty of growth potential as well. Our pick has been a big player in Latin America and its emerging markets. With many of these nations once again seeing new growth, our pick has been able to feast. Moreover, a newfound focus on eCommerce and digital operations has added additional growth to its bottom line. Continued additional branding in pet foods and organic/natural products has added higher-margin products to its mix.
All of these things have continued to boost cash flows and its sales during the current tough-to-navigate market.
The combination of these factors has helped propel our pick’s dividend for decades. And in turn, it has 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 Friday, April 19, 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 latest consumer staples stock could be a lucrative option.
