Dividends4Life: High Dividend Stocks Insiders Love

High Dividend Stocks Insiders Love

Posted by D4L | Sunday, August 18, 2013 | | 0 comments »

According to economic theory, company insiders should avoid buying stock and in fact should generally tend toward selling shares (and diversifying their wealth) unless they are confident in the company's prospects. Insider purchases should therefore signal this confidence, and in fact studies generally show a small outperformance effect for stocks bought by insiders (read our analysis of studies on insider trading). We track insider purchases and like to take a brief look at those where the purchase is large enough to be significant to see if the company might be a good buy. Read on for our quick take on five high-yield stocks at least one insider has bought recently:

An AT&T (T) Board member's trust bought 9,000 shares of the company's stock in late July. At current prices and dividend levels, AT&T pays an annual yield of 5%. Another large company where an insider has been indirectly buying is commodities producer Freeport-McMoRan Copper & Gold (FCX). With the stock down 13% in the last year against a market which has returned over 20%, the current dividend yield is now 4.3%. An insider, as well as his children, recently bought shares of technology use-focused real-estate investment trust Digital Realty Trust (DLR). Another real-estate investment trust which we've recorded an insider buying recently is Hersha Hospitality Trust (HT).

Source: MarketWatch

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