The current housing and mortgage mess is creating a lot of headaches for current and would-be homeowners. Thanks to the surge in prices and borrowing costs, many consumers are either trapped in their current homes or can’t move into new homes at all. As tragic as this is, it does create some interesting opportunities for certain firms – opportunities that lead to big dividend increases! Our latest Best Dividend Capture Stocks List pick falls within this camp with its latest 4.1% dividend increase.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick fills a vital need in the current housing mess. It’s an owner of self-storage facilities across the country. These units continue to be in high demand as homeowners and renters are in desperate need of places to store their ever-growing collection of belongings. Work-from-home trends have exacerbated the need for storage in order to dedicate more space to home offices. For our pick, these trends have continued to boost demand and rent growth.
And speaking of growth, our pick has plenty of potential. The short-term nature of these leases – often month-to-month – allows it to quickly move rents higher to match demand/locals. Moreover, costs related to the upkeep of storage units are very low when compared to other property types, which improves operating margins. A hefty dose of property tech has also increased margins and efficiencies. Add in the fact that self-storage is a very fragmented industry with plenty of M&A potential, and you have a recipe for strong cash flow growth.
With rising demand for self-storage assets, its large economic footprint and strong rent growth, 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 Friday, December 29, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 5.6 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest quick self-storage stock could be a lucrative option.
