Tech rules everything around us. How we work and play is evermore influenced by the sector. And while there are plenty of opportunities in the device makers, software firms and services stocks, some of the best plays in the sector could be the “arms merchants.” A fact that has our latest Best Dividend Capture Stocks List pick at a nearly 23% annual dividend growth rate over the last decade!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick isn’t necessarily flashy or exciting, but it does play a major role across the technology sector. Our pick is one of the largest producers of electronic components that allow for connectivity. This includes cables, circuit boards, connectors, RF antennas and other similar products. Your modem can’t function without our pick’s products nor can many other manufactured goods – both big and small. These products are very important to modern society. The demand has continued to drive strong cash flow growth and shareholder rewards for years.
The best part is that our pick has continued to find ways to grow. Thanks to rising server, broadband and mobile demand, our pick has continued to see surges to its bottom line. Rising military spending and the rise of the connected aerospace market have also helped. Meanwhile, the fragmented industry allows our pick for plenty of M&A to boost its dominance in various niches and expand into new markets.
With its importance across a variety of tech subsectors, our pick’s steady cash flow 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, September 18, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 2.4 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest technology pick could be a lucrative option.
