Retail continues to be a tale of two markets. Inflationary pressures have split consumers in half – those being able to afford higher prices and those moving downward to find more value for their dollars. This splitting has benefited our latest Best Dividend Capture Stocks List in spades. Sales continue to rise throughout its system.
That’s because our pick operates on the low end of the market and owns one of the largest chains of so-called “dollar stores” in the nation. Offering low prices for goods, our pick has been able to feast in the current environment as more consumers look towards its value offerings. Meanwhile, its strategy of focusing on more rural and city locations not serviced by big-box stores has continued to beef up cash flow further.
The end result is that 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 Monday, October 3, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 1.3 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.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
