We all know the line from Samuel Taylor Coleridge’s famous poem “The Rime of the Ancient Mariner” that goes “water, water everywhere but not a drop to drink.” While that poem was referring to the ocean and sailors, the sentiment is becoming true here on land as well. Water scarcity is becoming a significant issue. For those firms that are solving the race for Blue Gold, like our newest Best Dividend Capture Pick, it can mean plenty of profits for the long haul.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
The water sector is vast with a variety of moving parts. Our pick functions in the water infrastructure and industrial sector. Here, it makes a variety of pumps, valves, tanks, filtration, and other equipment to move and treat water. This massive product catalog covers both residential and industrial applications. As such, this broad focus and catalog size have allowed it to generate strong sales and cash flows from its operations as water scarcity and infrastructure spending have continued to increase. This has benefited its investors with the stock approaching Dividend King status.
The win for our pick is that it has continued to find new ways to grow within a “boring” sector.
This has included a hefty reliance on technology. Our pick has embraced the industrial internet of things (IIoT) and now has a vast number of connected devices deployed by customers. This has added plenty of machine learning and AI software to its menu. These continued to come with recurring revenues and higher margins. Moreover, our pick has continued to benefit from widespread bipartisan infrastructure spending plans across the world to improve water delivery and filtration. Adding smart M&A, you have a recipe for success.
With that, investors have continued to turn to our pick as a great dividend capture play. A dividend capture strategy involves buying a stock before its ex-dividend date and then selling it after the payout is recovered. With an ex-dividend date of Friday, October 24, our pick is primed for the strategy, as evidenced by its historical track record of recovering within an average of 3.1 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest water infrastructure pick could be a lucrative option.
