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If you are looking to increase your exposure to dividend paying stocks, this list might provide you with an interesting starting point for your own analysis.

To compile this list we look for stocks with the following characteristics:

  • Market cap between $300M to $2B
  • Dividend yield above 3%
  • Experienced significant insider buying over the last six months

We considered insider buying to be significant when the amount of shares bought by these individuals, over the last six months, was greater than 0.5% of the floating shares.

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Given the attractive yields and insider interest for these stocks, which of these securities are most bullish about?

1. Solar Capital Ltd. (NASDAQ:SLRC): Diversified Investments Industry. Market cap of $888.40M. Dividend yield at 9.83%. Over the last six months, insider purchased 115,000 shares, on a net basis. This represents 0.58% of the floating shares. The stock has gained 15.13% over the last year.

2. Crosstex Energy LP (XTEX): Independent Oil & Gas Industry. Market cap of $869.25M. Dividend yield at 6.04%. Over the last six months, insider purchased 176,490, on a net basis. This represents 0.61% of the floating shares. The stock has gained 48.79% over the last year.

3. KKR Financial Holdings LLC (KFN): Asset Management Industry. Market cap of $1.77B. Dividend yield at 6.02%. Over the last six months, insider purchased 1,144,000 shares, on a net basis. This represents 0.82% of the floating shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.69). The stock has gained 17.31% over the last year.

4. Star Gas Partners LP (NYSE:SGU): Specialty Retail Industry. Market cap of $390.12M. Dividend yield at 5.38%. Over the last six months, insider purchased 1,200,000 shares, on a net basis. This represents 2.62% of the floating shares. Relatively low correlation to the market (beta = 0.66), which may be appealing to risk averse investors. The stock has gained 42.22% over the last year.

5. NL Industries Inc. (NYSE:NL): Synthetics Industry. Market cap of $702.16M. Dividend yield at 3.47%. Over the last six months, insider purchased 52,894 shares, on a net basis. This represents 0.83% of the floating shares. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.47%, current ratio at 1.81, and quick ratio at 1.41. The stock has gained 79.03% over the last year.

*Insider buying data sourced from Yahoo Finance, all other data sourced from Finviz.

Source: 5 High-Yield Dividend Stocks With Significant Insider Buying