Arguably, one of the most profitable business models and ideas is operating within a service industry that no one wants to do, but is necessary to function. It’s here that a firm can generate plenty of cash flows and profits from doing the unwanted. Perhaps no better example of this is within the environmental services industry. For our latest Best Dividend Capture Pick, providing a needed service has allowed it to generate plenty of revenue growth and rewards for its shareholders over the years.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick’s niche happens to be in pest and wildlife control. Essential services like pest eradication, termite protection, and wildlife removal are often unwanted, but they are needed. And in some instances, regulatory requirements. As one of the largest firms within the sector, our pick’s services cover millions of residential and commercial customers across roughly 70 countries. The best part is that our pick’s services are often tied to long-term contracts. This provides plenty of stable cash flows, while additional services and one-offs add revenue boosts.
Despite our pick’s commanding presence in the industry, it has been quite successful in finding growth as well.
This includes a hefty dose of technology. The firm has been innovative in using new route logistics planning to reduce lead times and costs, while implementing CRM software to analyze customer needs quickly. Moreover, the firm has been a long-time user of M&A to expand its market footprint, enter new service areas, and add tangible services to its menu.
All in all, our pick’s niche and must-have nature generate plenty of stable cash flows. Coupled with hefty insider ownership, our pick has also become an excellent 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, August 11, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 1.2 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest environmental services pick could be a lucrative option.
