The healthcare sector is a complex web of different subsectors. However, for many investors, the focus tends to be on the sexier and more exciting areas of those niches. Drug development, biotechs, and medical device stocks tend to capture most investors’ attention. But some of the best could be in the more boring but very much needed industries. Our latest Best Dividend Capture Pick is a prime example of that, proving that boring can equal years worth of dividend increases.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick’s niche is in the distribution of healthcare management tools and supplies. Hospitals, doctors’ offices, pharmacies, and other healthcare providers call on our pick to get them the drugs and supplies needed to do their jobs. This includes basic supplies like tubing and bedpans to more advanced gene therapy and cancer-fighting drugs. Without our pick acting as the middleman, healthcare simply cannot happen. And as one of the largest providers of drugs and medical devices, our pick’s leadership position is secured, providing plenty of steady cash flow and growth to its bottom line.
The best part is our pick has continued to find new ways to grow as well.
Our pick was an early adopter of technologies such as including barcode scanning for distribution, pharmacy robotics, and RFID tags. Since then, our pick has added new software and healthcare IT infrastructure to its menu of products. These higher margin products continue to provide strong recurring revenues to our pick’s cash flows. Moreover, our pick isn’t afraid to conduct M&A or even spin off divisions to boost growth. Recent buyouts and a plan to carve off some aging units bode well for its future.
The result is our pick continues to drive its leadership position and must-have niche within the healthcare sector. This position, combined with its strength in ownership, has also allowed it to be 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 2, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 9.5 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest healthcare pick could be a lucrative option.
