Natural gas continues to be the bridge fuel of choice, offering low costs, lower carbon output, and enough base-load power for our electric grid. As a result, natural gas demand continued to grow from power producers and other end-users. For firms within the sector, cash flows can be robust throughout the entire value chain. Just ask our latest Best Dividend Capture Pick, which recently increased its dividend by 3.9%!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
The secret to our pick’s success is that it’s not a specialist within the natural gas sector. It has hands all along the value chain. Most energy stocks function within one segment of the market. They either pull oil and gas from the ground, move it via pipelines, or sell it to end-users. Our pick does all three with regulated and non-regulated assets. This allows our pick steady cash flows as well as the potential for added increases to its bottom line. Its utility keeps the lights on so to speak, while E&P operations and gathering lines help provide earnings boost. The end result is a strong dividend stock with over fifty years’ worth of increasing payouts.
The best part is that there is plenty of growth potential for our pick as well.
That’s because electricity and natural gas demand is only getting larger. That’s because of the sheer amount of energy needed to run new artificial intelligence data centers and quantum computing models. With a foothold in the Appalachian Basin and key eastern cities, our pick has the potential to see rising demand for its assets, both regulated and non-regulated ones. This could provide it with decades more cash flow growth.
The combination of its long-term growth potential, steady utility cash flows, and mixture of non-regulated businesses has made our pick a wonderful 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, June 30, our pick is well-positioned for the strategy, as evidenced by its historical track record of a recovery period averaging 1.9 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest natural gas pick could be a lucrative option.
