Arguably, one of the biggest trends has to be onshoring and the reconfiguration of supply chains. The pandemic exposed some nasty issues with the world’s logistics. Since then, suppliers, manufacturers, retailers, and distributors have started to tackle the problem. Warehouse and localized manufacturing demand has surged. All of this has benefited our latest Best Dividend Capture Pick in spades!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our new selection is a ‘picks & shovels’ play on the onshoring and new supply chain. As one of the largest producers of warehouse equipment, barcode readers, labels, and other logistics supplies, our pick’s catalog of goods are must-have items for a variety of manufacturers and warehouse operators. This includes many required regulatory items like lock-out tags and safety equipment. And with many of these items requiring constant replenishment, our pick features plenty of steady cash flows, enough to raise its dividend payout for over 40 years straight. This includes its latest 2% increase!
The best part is our pick has continued to find growth. With onshoring just getting started and new government subsidy programs boosting industrial capacity here at home, our pick has continued to see demand for its products surge. Longer term, we’ll need more warehouses to satisfy onshoring plans. At the same time, our pick’s forays into software and more services have helped create higher margin revenues for its bottom line. All of these factors have helped it stay strong in the current mixed business environment.
With its steady ‘picks & shovels’ business model and continued onshoring growth, our pick’s steady cash flows make 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 Monday, October 9, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 3.8 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest warehouse equipment pick could be a lucrative option.
