For any sized firm, risk management is a paramount issue. But for smaller firms, adequately handling risks can be a life or death issue. Often, smaller firms don’t have the financial wherewithal to handle big shocks to their systems. Insurance is a must, and our latest Best Dividend Capture Stocks List pick has been operating in this smaller enterprise niche for years, rewarding shareholders along the way.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Small- and medium-sized businesses come with their own set of risks – and that’s where our pick thrives. Our pick is an underwriter of specialty insurance. Its umbrella covers P&C and reinsurance for a variety of industries, such as commercial real estate, collectibles, restaurants, events and the growing cannabis industry. The win is that these lines of business come with higher premiums and profits. Better still is that its focus on private and middle market businesses allows our pick to charge even more as these businesses don’t have a ton of options. This leads to stronger underwriting profits and the ability to grow its float faster.
Thanks to its focus, rising rates and strong float portfolio, our pick generates a lot of cash flow for its investors. As such, 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 Friday, June 30, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 3.2 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest insurance pick could be a lucrative option.
