Conglomerates may look like dinosaurs in the modern business era as specialization and separation have become the norm for many American firms. But there can be something said for owning a wide range of assets, businesses, and holdings. For one, this approach provides stability of cash flows and profits. For those conglomerates that do it well, such as our latest Best Dividend Capture Pick, it can mean plenty of dividend increases as well!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Like many conglomerates, our pick started as a family business, owning a key newspaper in the late 1800s. Since then, our pick has expanded its media empire into new online and digital operations covering a wide range of advertising and subscription-driven media properties. These continued to include some flagship bastions of print and journalism.
Growth has remained strong at our pick as well.
Our pick has continued to expand outward into new areas of non-media operations. These include everything from owning car dealerships and manufacturing to healthcare and hospice care. This strategy has continued to strengthen the firm’s cash flows and create added diversification among its profits. Our pick isn’t afraid to switch things up either. Over its history, it’s been willing to sell assets, including its flagship operations, if the price has been right or to change course into new growth areas. This has allowed our pick to keep growing while other conglomerate rivals have stagnated.
As such, our pick has become 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 Thursday, April 17, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 2.9 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest conglomerate pick could be a lucrative option.
