10 Stocks You Could Capture Dividends From This July
In the fast-paced and unpredictable nature of the stock market, investors are constantly on the lookout for strategies that can secure stable returns in a tumultuous environment.
While some may froth at the notion of finding consistency amid market turbulence, a growing number of savvy investors have turned their attention to the art of capturing dividends.
This nimble approach empowers investors to capitalize on the ebb and flow of dividend payouts, enabling them to extract value from the stock market with precision timing.
Get In, Cash Out
Dividend capture is a strategy that revolves around profiting on the payment of dividends by companies, often in the form of cash distributions to shareholders. Instead of investing for the long term, dividend capture investors aim to capture the dividend payment while owning the stock for a relatively short period.
Strategically purchasing shares just before the ex-dividend date — the cutoff point for eligibility to receive the upcoming dividend — investors seek to capture the dividend payout and subsequently exit the position. This tactical maneuver allows investors to secure income from dividends while avoiding prolonged exposure to market volatility.
Dividend capture offers a unique advantage: the ability to generate income rapidly and repeatedly. By carefully selecting stocks with upcoming dividend payouts, investors can position themselves to capture a series of dividends within a short timeframe.
This regular infusion of cash can provide a reliable income stream and the potential for reinvestment or further diversification.
New Quant Model
The Fintel platform recently launched a new quant model, “The Dividend Capture Strategy”, which highlights stocks with upcoming ex-dividend dates plus other helpful analytics.
Today, we delve into 10 stocks from the list that will go ex-dividend this week or next. The stocks we have selected from the last have low average “recovery days” which is the time it takes for the share price to recoup capital losses after falling by the dividend rate once the record date hits. This means that on average the investor can “harvest” the dividend and then sell the shares in a profitable trade.
American Eagle Outfitters Inc. (US:AEO), the popular retail chain, will go ex-dividend on July 6 with a payment scheduled for July 21. The quarterly dividend of 10 cents per share rewards investors with an annual yield of 3.28% and a current yield of 0.82% from the payment. The stock is known for its rapid recovery, typically regaining its pre-dividend share price in just a single day.
Lincoln National Corp. (US:LNC), a Fortune 250 U.S. holding company, is set to go ex-dividend on July 7 with a subsequent payment on Aug. 1. A quarterly dividend of 45 cents per share equates to an impressive annual yield of 6.9% and a current yield of 1.73%. The recovery day ratio for LNC stands at 1.67, indicating a relatively quick capital recovery for dividend investors.
Gentex Corp. (US:GNTX), a leading supplier of digital vision and connected car technologies, is scheduled to go ex-dividend on July 6 and will make payment on July 19. GNTX has a quarterly dividend of 12 cents per share, giving an annual yield of 1.64% and a return of 0.41% from the quarterly payment. The share price usually recovers in about 2.17 days after going ex-dividend.
Quest Diagnostics (US:DGX), the world’s leading provider of diagnostic information services, will go ex-dividend on July 10 and pay its shareholders on July 25th. The quarterly dividend of 71 cents per share provides a 2.04% annual yield and a 0.51% current yield. DGX typically requires 2.58 days for share price recovery post dividend.
NetApp Inc. (US:NTAP), a hybrid cloud data services and data management company, is slated to go ex-dividend on July 6 and will disburse dividends on July 26. With a quarterly dividend of 50 cents per share, it offers a 2.62% annual yield and a 0.65% return from the dividend. The stock usually takes about 2.67 days to recover its share price.
City Office REIT (US:CIO), a real estate investment trust specializing in office properties, will go ex-dividend on July 6 with payment on July 21. It offers a high annual yield of 13.42% with a quarterly dividend of 10 cents per share and a current yield of 1.68%. The recovery time is slightly longer, averaging around 2.78 days.
Wabash National Corp. (US:WNC), a diversified industrial manufacturer, is scheduled to go ex-dividend on July 5 with a subsequent payment on July 27. WNC’s quarterly dividend is 8 cents per share, translating to an annual yield of 1.23% and a current yield of 0.31%. Share price recovery typically takes around 2.82 days.
The iconic food company, Campbell Soup (US:CPB), will go ex-dividend on July 5, with payment following on July 31. Its quarterly dividend of 37 cents per share yields an annual return of 3.18% and a current return of 0.8%. It usually takes 2.92 days for the share price to recover.
On July 6, General Dynamics (US:GD), a leading global aerospace and defense company, is set to go ex-dividend. Investors can expect a 2.45% annual yield and a return of 0.61% from the hefty quarterly dividend of $1.32 per share. That is schedule to be paid on Aug. 11. The stock requires about 3.18 days for share price recovery.
Sysco Corp. (US:SYY), the global leader in selling, marketing and distributing food products, will go ex-dividend on July 6 with the payment to follow on July 28. A quarterly dividend of 5 cents per share delivers a respectable 2.66% annual yield and a 0.66% return from the dividend. However, it has a relatively longer recovery period with about 4.09 days.
This article originally appeared on Fintel
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