Natural gas has quickly emerged as a lower-carbon source of energy production amid our world’s ever-growing needs. As we’ve embraced technology, artificial intelligence (A.I.), and electric vehicles, natural gas has been tapped as a way to provide the sheer amount of energy needed, while still balancing our efforts to slow global climate change as renewables ramp up capacity. For firms in the natural gas space—such as our latest Best Dividend Capture Pick—it means steady profits and shareholder rewards!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick’s uniqueness happens to be its operating model. Most energy stocks function within one segment of the market. They either pull oil & gas from the ground, move it via pipelines or sell it to end users. Our pick does it all with E&P assets, a huge pipeline network, and a regulated natural gas utility. This mixture of assets has allowed our pick to deliver on its cash flows and profits, offering diversification benefits to its shareholders. Different businesses function differently at different times, allowing them to keep their rewards flowing. Our pick has managed to keep its payout increasing for over five decades straight!
The best part is that our pick has a lot of growth potential as well.
Aside from the sheer amount of energy needed to run new A.I. models and quantum computing efforts driving growth, our pick has been able to find growth in additional ways. The firm has been successful in navigating rate increases for its customers while embracing new technology. This has reduced production costs at its wells and enhanced production. Meanwhile, new gathering lines in key shales have added new revenues as other E&P firms pay our pick steady cash to get their product to market.
The result is that our pick’s steady cash flows and multiple businesses in the natural gas sector have made our pick 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, March 31, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 1.8 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest natural gas stock could be a lucrative option.
