For dividend seekers in the financial sector, the largest banks, brokerages, and insurance stocks are often the first and only place they consider. That’s a real shame because some of the best opportunities could be in the slightly smaller, regional, and community banks. Firms like our latest Best Dividend Capture Pick combine strong income potential and ample growth.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Like many regional banks, the secret to our pick’s success is where it does business. Operating in the economically strong regions of the Midwest, including Wisconsin, Illinois, and Minnesota, our pick has prospered as these areas have grown economically. This has resulted in increased deposit and loan growth, along with improvements to the company’s net profit. That operating area has benefited in another way: fiscal conservatism. Thanks to a strong sense of conservatism in its lending practices, our pick features a far less risky loan profile than some of its rivals and has avoided many of the pitfalls some regional banks have dealt with in recent years.
But our pick isn’t just boring. There’s ample growth to be had.
Our pick has continued to expand into new commercial lending, specialized finance, and other loan products. Moreover, our pick has continued to use Mergers and Acquisitions (M&A) to its advantage over the years, adding branches, deposits, and even specialized banking services such as trusts/wealth management into its mix. Additionally, our pick has continued to shake up banking tradition by trying out new branch locations, including a micro-branch style focused on automation and technology.
The result is a conservative bank with ample cash flows and growth potential.
With that, our pick is an excellent dividend capture play. A dividend capture strategy involves buying a stock before its ex-dividend date and then selling it after the payout has been recovered. With an ex-dividend date of Monday, December 1, our pick is well-positioned for the strategy, as evidenced by its historical track record of a recovery period averaging 7.1 days after going ex-dividend.
For investors seeking a combination of total return of income and capital appreciation, our latest banking pick could be a lucrative option.
