Utilities have long been prized by income seekers due to their stability. No matter what the economy is doing, we still need to heat and power our homes. Because of this and the fixed cost nature of utilities, they hand out plenty of dividends to shareholders. This includes our latest Best Dividend Capture Stocks pick, which has been delivering steadily growing dividends for over a decade!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Like many top utilities, our pick’s strength lies within its operating region. Arizona continues to be a hotbed of economic growth and features plenty of strong demographic trends. As the largest electric utility in the state covering all but four of Arizona’s counties, our pick features steady cash flow from its operations. At the same, our pick has continued to find growth in a regulatory-friendly environment as well as through new renewable/green energy initiatives. Solar and nuclear operations dot its generating assets and have led to plenty of growth opportunities for the utility.
All in all, the combination of steady assets coupled with plenty of renewable growth has continued to produce plenty 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 Monday, July 31, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 3.4 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest personal care and household product pick could be a lucrative option.
