Consumers have continued to drive the economy. But lately, data would suggest that consumers are starting to feel tapped out. So, to get through the potential malaise, it takes a very special retailer. And luckily for our latest Best Dividend Capture Stocks List pick, it happens to be one of the best around. That fact has driven annual dividend growth of nearly 13% for the last decade!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
The secret is our pick’s business model that has created a cult-like status among its consumers. Unlike any old retailer, to shop at our pick you need to be a member. And its members pay a hefty annual fee for the privilege. This helps create a base of cash flow for our pick before it even sells a single item. Speaking of those items, our pick has a mix of merchandise that includes staples as well as unique limited finds. This helps drive repeat traffic to its stores.
Our pick has continued to find growth. Partnerships with major product producers to create “only-at” items have boosted sales. Meanwhile, our pick has continued to invest heavily in technology and automation. This has boosted margins and reduced costs for numerous process and in-house products. The end result is a steady-eddy retailer with plenty of hefty cash flow.
For investors, our pick’s niche and cult-like status among its shoppers has made it a recession-resistant retailer. With that, our pick makes for 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 Thursday, November 2, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 0.8 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest retail pick could be a lucrative option.
