Artificial intelligence has captured the world by storm. But there is one big thing to remember. The best software and AI applications are worthless if you don’t have the correct hardware to run it on. And in that, the manufacturers of servers, PCs, and other datacenter equipment are the real stars of the A.I. show. For the hardware firms, like our new Best Dividend Capture Pick, it can result in strong dividend and profit growth for the long haul.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick could be considered tech royalty, coming of age during the Dotcom Boom. It’s here that our pick started selling personal computers and other hardware direct to consumers and enterprises. Thanks to its global supply chain built up over decades, this business provides plenty of cash flows for our pick. As the landscape for PCs changed and the refresh cycle lengthened, our focus continued to expand into various IT services such as cloud computing, virtualization, cybersecurity, and data management.
The win for our pick is that, unlike some Dotcom relics, our pick has continued to find ways to grow.
This has included some transformative M&A, making it a cloud computing leader. More recently, its focus on data infrastructure and server build-outs has made it an AI leader. This focus on private sector servers and data centers has provided new opportunities in edge computing, A.I., data management, and AaaS. It’s also helped reignite its profit profile and create a long tailwind of growth. One that has been supportive of investors.
With that, investors have continued to turn to our pick as a great dividend capture play. A dividend capture strategy involves buying a stock before its ex-dividend date and then selling it after the payout is recovered. With an ex-dividend date of Tuesday, October 21, our pick is primed for the strategy, as evidenced by its historical track record of recovering within an average of 7.8 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest tech hardware producer pick could be a lucrative option.
