During the gold rush, the real winners weren’t the miners—they were the ones selling picks and shovels. This “picks and shovels” business model, which profits regardless of who strikes gold, has proven successful for decades. Today, companies following this approach—like our latest Best Dividend Capture Pick—often generate consistent returns and long-term dividend growth.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Ironically enough, our pick happens to provide “picks & shovels.” Or at least the modern equivalent of heavy machinery. Its product catalogue spans backhoes, excavators, bulldozers, and other needed equipment to build, mine, and construct products big and small. Without our picks’ equipment, modern building and engineering plans simply can’t happen. The best part is our pick’s size, abundance of catalogue, and name recognition have allowed it to deliver plenty of cash flows, sales, and profits for decades.
Our pick has been quite successful in finding growth as well.
Thanks to rising infrastructure spending, our pick has continued to see increasing demand for its various construction equipment, as well as natural gas generators and engines. New forays into industrial internet of things (IIoT) applications for its machines, repair services, and other energy-efficient products have continued to boost margins and sales further. Finally, our pick hasn’t been shy about M&A or selling lesser-performing divisions when needed. All of these factors have increased margins and boosted the firm’s cash flows, allowing it to become a dividend champion.
All in all, our pick has become a strong growth and income play. For shorter-term investors, this has meant that our pick has also become 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, July 21, our pick is well-positioned for the strategy, as evidenced by its historical track record of a recovery period averaging 4.8 days after going ex-dividend.
For investors seeking a combination of total return and capital appreciation, our latest heavy equipment pick could be a lucrative option.
