Artificial intelligence (AI) has the power to transform even the most steadfast sectors, turning boring plays into growth stocks. Nowhere is that truer than in the utility sector. Thanks to AI’s strong growth, many utilities—including our latest Best Dividend Capture Pick—are finding new ways to profit, all while rewarding their shareholders.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick is a utility, but not just any utility—it has unique potential to profit from rising AI demand. The company’s wide umbrella spans natural gas distribution, interstate and regional gas pipelines, electricity transmission lines, electricity generation assets, compressed natural gas (CNG) solutions, propane, and renewable assets. This broad reach allows our pick to profit across various economic and market scenarios, balancing cash flows and enabling it to continue rewarding investors through thick and thin.
That includes rising AI power and datacenter demand.
AI growth has strong potential to ignite many parts of its business, but our pick is no one-trick pony. It has long used M&A to add capacity, regulated and non-regulated assets, and expand into new markets, such as the virtual pipeline and remote CNG space. These initiatives have driven cash flows and growth, while a conservative balance sheet underscores its shareholder-friendly management culture.
With over 20 years of dividend growth and exciting potential to increase that dividend further, our pick has become a compelling dividend capture play for investors.
A dividend capture strategy involves buying a stock before its ex-dividend date and selling it after the payout has been recovered. With an ex-dividend date of Monday, March 16, our pick is well-positioned for this strategy, as evidenced by its historical average recovery period of 7.1 days after going ex-dividend.
For investors seeking a combination of income and capital appreciation, our latest utility pick could be a lucrative option.
