Over the last few years, the boring world of supply chain management has become a big deal. From the COVID-19 pandemic to President Trump’s new tariffs, getting products and items needed to support a business or build products has become a vital component of success. For those firms that help with supply chain management, such as our latest Best Dividend Capture Pick, it can mean plenty of surging sales and growing dividends.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
On the surface, our pick seems pretty boring. It operates as a distributor of various supplies to a host of different businesses. These supplies can be as simple as fasteners and screws to more high-tech industrial machines and equipment. The win for our firm has been its ability to get these products in the hands of its customers quickly and efficiently. This distribution scope provides a high barrier to entry for smaller rivals. Moreover, our pick has many long-term contracts with its customers. This provides a steady base of cash flows for its bottom line.
Our pick has continued to find growth within its niche as well.
This includes upgrading technology to improve the time of delivery to be instant and on-demand. Additionally, its technology and electronic procurement offerings have helped create data interchanges to drive efficiency and cash flows. Moreover, our pick has continued to use those hefty cash flows to buy out smaller rival distributors to boost its size, expand into new specialties, as well as beef up its product catalog. Specialty products command higher margins, and our pick has continued to feast.
The result is that our pick’s placement in the supply chain has allowed it to be a dividend leader. And as such, it is 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 Friday, April 25, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 2.2 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest industrial supplier pick could be a lucrative option.
