There are banks – and then there are banks with billions in assets, huge deposit bases, large lending businesses and other financial management products. These firms form the bedrock of the world’s financial system and continue to support their shareholders through steady dividend and buyback growth. Our latest Best Dividend Capture Stocks List pick just so happens to be one of them!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick’s history as a major financial powerhouse runs deep, with its current form created during the 1990s during the period of deregulation. Since then, our pick has become a massive powerhouse with trillions in assets, making it one of the largest banks in the world – period. This huge footprint allows our pick to generate billions in cash flows and profits for its shareholders.
The best part is that it has managed to grow those profits through thick and thin in line with the economy’s wave. Because of its huge size, our pick has been a savior in the financial sector by bailing out smaller, struggling financial firms and pulling them under its umbrella. At the same time, a hefty dose of banking technology has continued to improve profits and margins, alongside its wealth and asset management businesses. Our pick has continued to strengthen its position in various new markets, such as portfolio and Treasury management – all with great success.
With its huge asset base, growing loan portfolio and overall financial prowess, our pick has continued to generate hefty cash flows from its operations. This fact has made our pick a great 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, January 4, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 3.3 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest banking stock could be a lucrative option.
