Utilities have long been prized by dividend investors because they provide income regardless of the environment. After all, consumers and businesses need power regardless of the economy. However, utilities can further strengthen this fact. Our latest Best Dividend Capture Pick is a prime example. Utilizing its multi-asset strategy to add diversification to its cash flows, our pick powered its dividend for over two decades.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
As we said, our pick is a utility, but it doesn’t just provide power or natural gas; it does it all. The company’s wide umbrella includes assets in natural gas distribution, interstate and regional gas pipelines, electricity transmission lines, electricity generation assets, compressed natural gas (CNG) solutions, propane, and renewable assets. This wide net allows our pick to profit from various economic and market scenarios. It balances its cash flows and enables it to continue to reward investors through thick and thin.
The best part is our pick has continued to find growth opportunities.
That’s because its main businesses sit in the cross-hairs of growing data center and artificial intelligence (AI) demand. AI is very power hungry and is expected to boost long-term demand for electricity and natural gas as new data centers are built. Our pick, which offers both power generation and natural gas transportation/distribution, is a win-win. This will continue to drive profits far into the future. Meanwhile, the firm has been smartly growing its system in its key operating regions via smart M&A initiatives. Finally, the firm has been a first mover in the virtual pipeline space, delivering LNG and other fuels to end users in remote or non-connected applications. This has provided another runway for growth and growing demand for natural gas.
With this growth and steadfastness, our pick has long been a top pick among utilities and dividend seekers.
As such, it has remained an excellent dividend capture play. A dividend capture strategy involves buying a stock before its ex-dividend date and then selling it after the payout has been recovered. With an ex-dividend date of Monday, December 15, our pick is well-positioned for the strategy, as evidenced by its historical track record of a recovery period averaging eight days after going ex-dividend.
For investors seeking a combination of total return of income and capital appreciation, our latest multi-utility pick could be a lucrative option.
