When we think of the banking and financial giants, firms from the United States often come to mind. After all, companies like J.P. Morgan or Bank of America are some of the biggest financial powerhouses in the world. But there are plenty of giant global banking institutions, like our latest Best Dividend capture Pick, that offer strong financial metrics and dividend prowess. Since the financial crisis, our pick has raised its dividend every year.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is one of the largest financial institutions in Canada, tracing its history back 150 years. Today, our pick is a global powerhouse offering a range of services, including commercial and consumer banking, wealth management, and access to capital markets. That brought assets at the bank to over $1 trillion.
The secret to Pick’s success remains its conservatism. Canada’s banking system remains one of the soundest in the world. Regulations have long prevented Canada’s banks from taking on too much risk. As a result, our pick remains a conservative choice with very high Tier 1 capital ratios and reserves. This has helped the bank avoid many of the blow-ups and strife that affected American banks during the global credit crisis. That conservatism has also played out in recognizing issues before they start. Our pick has long been a seller of assets and businesses just before things got dicey.
But conservatism doesn’t mean low or no growth. Our pick has continued to shift into high-margin areas such as wealth management and U.S. commercial banking. This includes buyouts of small boutique wealth managers and specialists in tax and estate planning. Additionally, a hefty dose of private credit and technology has improved underwriting of loans and yields.
With its fiscal conservatism and continued cash flow growth, our pick has long been a favorite among dividend investors. That includes being a wonderful dividend capture play as well. 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, September 29 our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 14.9 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest stable global bank pick could be a lucrative option.
