With the start of earnings season, the focus has been on the biggest banks. But for many smart income seekers, the best deals may be down the market-cap ladder. Regional and community banks can often offer the best balance of growth and income potential to dividend seekers. That’s something our latest Best Dividend Capture Pick has been doing since the 1930s. Moreover, it’s been a dividend superstar since the depths of the Great Recession, raising payout for the last seven years straight.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Like many strong regional banks, the secret to our pick’s success remains its operating region. For our pick, its focus is on America’s Midwest and Plains states. But unlike many regional banks that adopt a common name across all their platforms, our pick serves as a bank holding company, operating local banks tied to their respective communities. This gives the illusion of hometown roots while still providing all the benefits of a top 100-sized bank. The result is plenty of steady deposits and cash flows.
That bank-holding company umbrella works in plenty of other ways as well.
Our pick has managed to find some non-traditional banking ways to grow. This includes agri-credit, specialty financing solutions, retirement plan services, and even practice finance solutions for doctors. This provided plenty of growth and attractive yields for our pick. A hefty dose of technology spending in both operation and loan underwriting has helped deliver cost savings and better outcomes for its portfolio.
The result is that our pick has plenty of steady growth as well as cash flows under its umbrella.
And with that, investors have continued to support shares of our pick and it’s 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 Tuesday, November 12, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 4.9 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.
