We often take where our water comes from for granted. After all, for many of us, we simply turn on the tap and there it is. But access to clean, potable, and fresh water is quickly becoming a worldwide issue. Moving it, storing it, and cleaning it has become a hotbed issue for many nations, even those in the developed world. For those firms within the sector, like our newest Best Dividend Capture Pick, providing these solutions can turn into decades’ worth of shareholder rewards.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
Our pick’s three decades’ worth of dividend increases come from its specialty focus. Its niche happens to be monitoring equipment. This includes meters, control valves, pressure sensors, and quality control devices for both municipal and industrial customers. All of these devices are crucial to measuring and monitoring water as it flows through infrastructure. As such, its various product catalog offerings are ‘must-haves’ for any application using water. This focus has made our pick a cash flow champion as end users look to our pick to fill their needs.
While providing metering equipment may sound boring, there’s plenty of growth to make it more exciting.
For one thing, the continued public and private spending on improving infrastructure has added plenty of extra cash to its bottom line. But increasingly, that spending has been on new advanced smart-metering products and software. Our pick has been quick to embrace digital solutions. These new products come with higher margins and, in some cases, function as SaaS, providing recurring, high-margined revenue. Additionally, our pick has expanded into new products for the energy and chemicals sectors, adding more cash to its bottom line.
The end result is that our pick’s position as one of the top names in water has been assured. And with that, investors have continued to make it a top-notch 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 Friday, May 23, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 1.7 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest water products pick could be a lucrative option.
