The latest data still shows strong consumer demand, but they aren’t spending evenly across the board. Experiences and dining out are garnering the lion’s share of consumers’ cash. For firm’s operating in this sector, it’s continued to support high revenue generation and profits. This includes our latest Best Dividend Capture Stocks List pick, which has rewarded investors with steady dividend growth for the last eight years!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is an owner of quick-service restaurants. But they are not just any owner: they are one of the largest operators in the sector with over 30,000 restaurants among its system. The win for our pick has continued to be its focus on different quick-service concepts by including some iconic and fanatical brands in their respective categories. Moreover, our pick’s brands cover the gamut of meal and snack options among value and higher price points. This has kept consumers coming back over and over again.
Our pick has continued to find plenty of ways to grow as well. Originally created via private equity M&A, our new selection has also found plenty of growth via buyouts and bolt-on acquisitions. These additions have focused on cult-like brands and have helped drive additional traffic to the firm’s overall system. Meanwhile, new limited-time menu items that have created social media and gotta-have-it-now buzz have continued to help as well.
With a stable of iconic brands, strong cult-like demand and steadily rising revenues, our pick has continued to generate hefty cash from its operations. That fact has also made our pick 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 Wednesday, December 20, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 11.6 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest quick-service restaurant stock could be a lucrative option.
