Thanks to the surge in interest rates, housing has been a real mess lately. Demand for new and existing homes has cratered, while building permits have dropped substantially. Naturally, many stocks within the sector have followed suit – but not our latest Best Dividend Capture Stocks List pick. Our pick has continued to thrive, boosting its dividend by over 12% during the last year!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is a home builder. In fact, it’s America’s largest by revenue. Even during the current environment, our pick managed to generate more than $30 billion in sales last year. The reason comes down to its huge operating footprint across more than 30 states. Moreover, its size and scope, different price levels and styles of homes have helped it garner plenty of attention from would-be home buyers. It’s also helped pressure suppliers to reduce its own costs. Better still is that our pick has started to rent out its homes that are waiting to be sold. This has helped keep cash flowing, while a potential REIT spin-off could be possible.
All in all, our pick’s dominant position and ability to leverage its portfolio of homes to its advantage have continued to make it a top dividend stock. As such, our pick 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 Friday, August 4, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 3.8 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest home builder pick could be a lucrative option.
