The healthcare sector is one of the few areas of the market that can provide both stability and growth. Advances in medicine and treatments provide enough tailwinds for real growth, while consistent demand for various products provides a base for stable case flows. This is why the sector is often seen as a great long-term choice for portfolios. And our latest Best Dividend Capture Stocks List pick manages to straddle both sides of the line with ease.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick happens to be one of the largest medical device firms in the world. The key to our pick’s success and its long history of rising dividends happens to be its huge product catalog. This includes many low-margin devices such as tubing, syringes, and sample collection devices. These one-time-use items are must-haves at every healthcare facility and form a base of steady cash flows. Elsewhere, the firm has continued to move into higher margin and more advanced products. This has continued to provide growth to its profits and cash flows.
The combination has allowed our pick to raise its dividend for over five decades straight.
The best part is our new pick has continued to find growth. This has included moving into providing analytics and new AI software for medical treatments and discovery as well as more advanced computer-guided devices. Additionally, our pick has long been an acquirer of rivals that help boost its growth profile and add tangential products under its umbrella.
The result is that our pick’s stability and growth potential has 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 10, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 4.5 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest medical device play could be a lucrative option.
