When you supply parts, materials, and other ‘basics’ used by other manufacturers, you’re in a unique position. Since you supply to everyone, it doesn’t necessarily matter who wins—you still collect revenues while the end users battle it out. For our latest pick for the Best Dividend Capture Stocks List pick, this position has been fruitful for decades!
Our pick is a grower and producer of tobacco. The key is that our pick doesn’t make cigarettes, smokeless products or chewing tobacco. It grows, dries, and sells the leaves to other manufacturers. This position has allowed our pick to avoid much of the legal drama facing the industry as well as provide a steady base of cash flows. Our pick has paid dividends for over 50 years straight.
Because of its long history of operation and niche within the ‘sin stock’ space, 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 an ex-dividend date of Friday, July 8, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 20 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest tobacco 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.
