At first glance, stubborn inflation and uncertainty have a lot of consumers cutting back on discretionary spending. But one area of the market continues to see success. That would be dining out and an experience. Consumers are still opening their wallets to visit restaurants and other establishments. Albeit, perhaps in a different manner. For those firms — like our latest Best Dividend Capture Pick — who have gotten the new consumer paradigm right, it has meant a steady diet of dividend increases.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
The secret to our pick’s success remains its huge scale. It happens to be one of the largest restaurant owners in the country, owning and operating several chains with over 1,800 locations. The bulk of Americans live close to one or several of its restaurants. This scale helps drive down costs and gather sales no matter the cuisine people choose. This fact has continued to drive profits and cash flows for our pick. Moreover, it’s been able to reward shareholders throughout its history with plenty of buybacks and dividend increases.
Our pick has been quite successful in meeting changes in consumer tastes and finding new ways to grow as well.
Thanks to its scale, our pick’s customers generate plenty of data, which has continued to successfully mine for new menu items and concepts. Speaking of those concepts, our pick has quickly become an M&A star, adding additional chains to its umbrella to fill niches and underserved concepts. Finally, our pick has started to use value pricing to help inflation-wary consumers enjoy its offerings. A healthy dose of delivery, to-go, and at-home products licensing has allowed sales to keep growing amid economic uncertainty.
The result that is our pick has found a way to find growth and income for its shareholders. With that, 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, July 10, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 4.4 days after going ex-dividend.
For investors seeking a combination of total return and capital appreciation, our latest restaurant pick could be a lucrative option.
