Sometimes, the most overlooked dividend opportunities in today’s market can be found in companies operating within industries that many investors assume are in permanent decline. Firms like our latest Best Dividend Capture Pick simply generate ample cash flow and growth while being ignored by the public. It’s here that value-seeking investors can score hefty dividend yields.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick’s story begins in the tobacco field. Unlike cigarette manufacturers that depend directly on consumer demand, our pick serves as one of the world’s largest suppliers of leaf tobacco. This business model provides significant geographic diversification and long-standing customer relationships with many of the world’s largest tobacco companies. Best of all, our pick has long avoided the lawsuits surrounding cigarettes—it simply grows a crop.
This business generates steady cash flows and profits.
Perhaps the most compelling aspect of the story is the company’s ongoing transformation. Management has recognized for years that relying solely on tobacco would limit future growth, prompting a strategic expansion into plant-based ingredients, fruit and vegetable processing, natural flavorings, food ingredients, and specialty agricultural products. Through acquisitions and organic investment, the company has built a second growth engine serving food manufacturers and consumer packaged goods companies, exposing shareholders to attractive long-term trends in healthier foods, natural ingredients, and plant-based products.
Combined with its legacy tobacco business, these new segments make our pick a strong candidate for dividend capture—a strategy that involves buying a stock before its ex-dividend date and selling after the payout is recovered. With an ex-dividend date of Monday, July 13, and a historical average post-dividend recovery period of 5.8 days, our pick is well positioned for this approach.
For investors seeking a combination of income and capital appreciation, our latest agricultural pick could be a lucrative option.
