If you are considering dividend stocks, you may find this list very interesting.
We ran a screen on high dividend yield stocks, paying yields between 4-7% with sustainable payout ratios below 35%. We screened this universe for those seeing significant net insider buying over the last six months.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you think insiders are calling it right on these dividend stocks? Use this list as a starting-off point for your own analysis.
List sorted by net insider purchases as a percent of share float.
1. Lincoln Educational Services Corporation (NASDAQ:LINC): Education & Training Services Industry. Market cap of $428.12M. Dividend yield at 5.27%, payout ratio at 33.83%. Net insider purchases over the last 6 months at 291.38K, which is 1.38% of the company's share float. The stock is a short squeeze candidate, with a short float at 8.53% (equivalent to 5.74 days of average volume). The stock has had a good month, gaining 20.92%.
2. KKR Financial Holdings LLC (KFN): Asset Management Industry. Market cap of $1.72B. Dividend yield at 6.63%, payout ratio at 25.17%. Net insider purchases over the last 6 months at 1.14M, which is 0.77% of the company's share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.68). The stock has gained 25.49% over the last year.
3. Icahn Enterprises, L.P. (NASDAQ:IEP): Property Management Industry. Market cap of $3.87B. Dividend yield at 4.38%, payout ratio at 17.07%. Net insider purchases over the last 6 months at 27.00K, which is 0.43% of the company's share float. The stock has gained 23.52% over the last year.
*Insider data sourced from Yahoo Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.