There’s nothing particularly exciting about the insurance industry, except that it’s a cash cow. Thanks to the industry’s ability to generate plenty of cash from its float, the insurance sector can be a dividend investor’s dream. That’s certainly been the case with our latest pick for the Best Dividend Capture Stocks List and you can grab the opportunity before it goes ex-dividend on Thursday, July 14 with a $0.56 payout.
Our pick operates as a property and casualty insurance underwriter. The key is that our pick has focused on specialized commercial products for businesses. This sector comes with high premiums and less risk than consumer lines of insurance. The real win is our pick has been able to use its float to invest in a variety of real estate, private equity, and other assets to generate high investment returns.
Because of this, our pick has also been a dividend champion for nearly two decades and, as such, our pick is also 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 the stock going ex-dividend next week, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 2.9 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest insurance pick has the potential to give you what you need.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
