Seeking Alpha
Profile| Send Message|
( followers)  
These companies pay dividends--in some cases very generous dividends--of up to 14%. All of these companies have reported substantial insider buying even as some of these stocks have been rising. The fact that insiders are buying these names could be a good sign that there is still significant upside potential in these names. Some of these stocks like Federal Signal (NYSE:FSS) and Corelogic (NYSE:CLGX) have fallen recently, and the big sell off in those names could be great buying opportunities. I have provided links for each stock which verifies the insider buying filed with the SEC below. Here are the seven stocks:
Sara Lee Corp., (SLE) is trading around $17.84. Sara Lee makes a variety of food products and is based in Illinois. These shares have traded in a range between $12.83 to $20.26 in the last 52 weeks. The 50 day moving average is $17.25 and the 200 day moving average is $15.42. SLE is estimated to earn about 86 cents per share in 2011 and $1.07 for 2012. You can see the details of repeated insider buying here.
What Sara Lee insiders and other investors might be seeing: Sara Lee has a number of well known food brands such as Jimmy Dean, Ball Park, Hillshire Farm, Sun-Maid and others. As the economy improves, consumers are more likely to spend on brand name products like these instead of generics and store brands. The balance sheet is strong with minimal debt after cash is factored in. The dividend is 46 cents per share which is equivalent to a 2.7% yield. When the Executive Chairman buys about $2 million worth of SLE stock, (as shown in the link above) there must be some positive trends developing for this business.
Hatteras Financial Corp (NYSE:HTS) is trading around $28.45. Hatteras is a mortgage real estate investment trust (REIT) company, based in North Carolina. These shares have traded in a range between $11.25 to $31.98 in the last 52 weeks. The 50 day moving average is $28.41 and the 200 day moving average is $27.49. HTS is estimated to earn about $4.29 per share in 2011. You can see the details of insider buying here.
What Hatteras insiders and other investors might be seeing: The book value is stated at $24.84 so these shares are trading at a small premium to book. The dividend is very generous at $4 per share which is equivalent to a 14.2% yield. With that kind of payout, and when yields in other investments are still very low, it's easy to see why insiders are buying. The fact that insiders are buying could also be a positive sign that the dividend is safe.
Federal Signal (FSS) is trading around $6.36. Federal Signal makes a variety of products for vehicles such sirens, aerial platforms, etc and it is based in Illinois. These shares have traded in a range between $4.91 to $10.30 in the last 52 weeks. The 50 day moving average is $6.62 and the 200 day moving average is $6.14. FSS is estimated to earn about 34 cents per share in 2011 and 62 cents in 2012. You can see the details of insider buying here.
What Federal Signal insiders and other investors might be seeing: This company pays a 24 cent dividend which is equivalent to a 3.8% yield. This pays you to hold the stock while you wait for a higher share price. These shares are down nearly 40% from the 52 week highs. Between the dividend and the potential for price appreciation, there could be a solid buying opportunity here.
Equity One Inc. (NYSE:EQY) is trading around $18.21. Equity One is a real estate investment trust (REIT) company, based in Florida. These shares have traded in a range between $14.58 to $20 in the last 52 weeks. The 50 day moving average is $18.40 and the 200 day moving average is $17.08. EQY is estimated to earn about $1.11 per share in 2011. You can see the details of insider buying here.
What Equity One insiders and other investors might be seeing: The dividend is enticing at 88 cents per share, which is equivalent to a 4.8% yield. This company focuses on shopping centers. Since the sales trends for most retailers have been improving, it could be a sign that companies like EQY will see better financial results in the future. When retailers do well, there will be more demand for shopping center space and higher rents will follow.
Ashford Hospitality Trust (NYSE:AHT) is trading around $10.68. Ashford is a real estate investment trust (REIT) company, based in Texas. These shares have traded in a range between $6 to $11.18 in the last 52 weeks. The 50 day moving average is $10.17 and the 200 day moving average is $9.36. AHT is estimated to earn about $2.02 per share in 2011 and $2.17 for 2012. You can see the details of insider buying here.
What Ashford insiders and other investors might be seeing: The dividend payout is 40 cents per share which is equivalent to a 3.7% yield. This REIT focuses on hotels and with room rates and occupancy levels rising, Ashford should benefit from this trend. The dividend is well below the earnings estimates so it's more likely that Ashford will be able to raise the dividend in the future.
CoreLogic, Inc. (CLGX) is trading around $17.97. CoreLogic is a surety and title insurance company, based in California. These shares have traded in a range between $17.07 to $37.42 in the last 52 weeks. The 50 day moving average is $19.29 and the 200 day moving average is $18.66. CLGX is estimated to earn about $1.12 per share in 2011 and $1.29 in 2012. You can see the details of insider buying here.
What Corelogic insiders and other investors might be seeing: The dividend is enticing at 88 cents per share which is equivalent to a 4.9% yield. CoreLogic recently reported a loss of 30 cents per share in the fourth quarter and investors punished the stock. With shares at almost 50% off of the 52 week highs, this sell off could be a buying opportunity as the insider buying indicates. Also, the company is repurchasing shares, and it bought about 1.64 million shares in the fourth quarter. You can read more about their latest earnings and share repurchases here.
Starwood Property Trust (NYSE:STWD) is trading around $23.06. Starwood is a real estate investment trust (REIT) company, based in Connecticut. These shares have traded in a range between $16.44 to $23.67 in the last 52 weeks. The 50 day moving average is $22.59 and the 200 day moving average is $19.89. You can see the details of insider buying here.
What Starwood insiders and other investors might be seeing: The dividend payout is $1.68 per share which is equivalent to a 7.3% yield. This REIT focuses on commercial mortgages and with commercial real estate picking up, Starwood should benefit from this trend. Barry Sternlicht, CEO of Starwood recently said ""The commercial real estate debt markets have improved considerably over the past year,". You can read his remarks and the latest earnings report here.
The data is sourced from Yahoo Finance and Insidercow.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.
Source: 7 Dividend Stocks Showing Insider Buying