Seeking Alpha
Newsletter provider, fund holdings, insider ownership
Profile| Send Message|
( followers)

Defensive investors prefer stocks with high dividend yields. In the recent market turmoil, we encouraged investors to play defensively to protect themselves from potential inflation and sharp declines in the stock market. In addition, we believe that by focusing on the purchases of insiders, investors are more likely to outperform the market.

Below we compiled a list of 20 high-dividend stocks that insiders are buying. All companies have at least $10 billion market caps, dividend yield of over 4%, and were purchased by at least one insider since March.

Ticker

Company

Insiders

Dividend Yield

YTD Return

(NYSE:PFE)

Pfizer Inc.

1

4.43%

6.42%

(NYSE:PM)

Philip Morris

1

4.54%

18.31%

(NYSE:MRK)

Merck & Co. Inc.

2

4.71%

-7.38%

(NYSE:BMY)

Bristol-Myers

1

4.30%

20.33%

(NYSE:EPD)

Enterprise Products Partners

3

5.75%

5.36%

(NYSE:SO)

Southern Company

2

4.46%

14.89%

(NYSE:KMB)

Kimberly-Clark

1

4.01%

14.44%

(NYSE:NEE)

NextEra Energy, Inc.

1

4.02%

8.50%

(NYSE:RAI)

Reynolds American Inc.

2

5.62%

20.81%

(NYSE:CTL)

CenturyLink, Inc.

4

8.37%

-20.80%

(NYSE:KMI)

Kinder Morgan, Inc.

2

4.50%

-12.72%

(NYSE:RIG)

Transocean Ltd.

1

5.42%

-13.83%

(NYSE:AEP)

American Electric Power

1

4.90%

8.37%

(NYSE:NLY)

Annaly Capital

1

14.32%

8.74%

(NYSE:PCG)

PG & E Corp.

1

4.31%

-9.87%

(NYSE:ED)

Consolidated Edison Inc.

11

4.19%

19.54%

(NYSE:LO)

Lorillard, Inc.

2

4.66%

41.44%

(NYSE:HCP)

HCP, Inc.

1

5.20%

4.44%

(NYSE:WM)

Waste Management, Inc.

1

4.35%

-12.81%

(NYSE:XEL)

Xcel Energy Inc.

1

4.13%

9.28%

Lorillard Inc is a manufacturer of cigarettes in the United States. LO was purchased by two insiders since March. It had a dividend yield of 4.66% and returned 41.44% since the beginning of this year. It has a market cap of $15.4 billion and a P/E ratio of 15.28. Jim Simons invested $312 million in LO shares (check out Simons’ top stock picks).

Reynolds American Inc manufactures cigarette and smokeless tobacco products. RAI was purchased by two insiders since March. It had a dividend yield of 5.62% and returned 20.81% since the beginning of this year. It has a market cap of $22.0 billion and a P/E ratio of 16.4. David Winters and Jim Simons both invested over $40 million in RAI shares.

Bristol-Myers Squibb Company is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of pharmaceutical products on a global basis. BMY was purchased by one insider since March. It had a dividend yield of 4.30% and returned 20.33% since the beginning of this year. It has a market cap of $52.4 billion and a P/E ratio of 16. Jim Simons invested over $200 million in BMY shares.

Consolidated Edison Inc provides electric service and natural gas service in New York City and Westchester County. ED was purchased by 11 insiders since March. It had a dividend yield of 4.19% and returned 19.54% since the beginning of this year. It has a market cap of $16.8 billion and a P/E ratio of 15.68. Michael Messner invested $35 million in ED shares (check out Messner’s top stock picks).

Philip Morris International Inc is engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. PM was purchased by one insider since March. It had a dividend yield of 4.54% and returned 18.31% since the beginning of this year. It has a market cap of $119 billion and a P/E ratio of 15.54. Tom Russo invested $543 million in PM. Jim Simons also had $242 million invested in PM shares.

Southern Company supplies electric service. SO was purchased by two insiders since March. It had a dividend yield of 4.46% and returned 14.89% since the beginning of this year. It has a market cap of $36.3 billion and a P/E ratio of 18.03. Phill Gross and Robert Atchinson had $100 million SO shares.

Kimberly-Clark Corporation is a global company focused on building its personal care, consumer tissue, K-C Professional and other and health care brands. KMB was purchased by one insider since March. It had a dividend yield of 4.01% and returned 14.44% since the beginning of this year. It has a market cap of $27.4 billion and a P/E ratio of 16.52. Ric Dillon invested $63 million in KMB shares (check out Dillon’s top stock picks).

Xcel Energy Inc is engaged in the utility business. XEL was purchased by one insider since March. It had a dividend yield of 4.13% and returned 9.28% since the beginning of this year. It has a market cap of $12.1 billion and a P/E ratio of 14.82. John A. Levin had $17 million invested in XEL stocks.

Annaly Capital Management Inc owns, manages and finances a portfolio of real estate related investments. NLY was purchased by one insider since March. It had a dividend yield of 14.32% and returned 8.74% since the beginning of this year. It has a market cap of $17.6 billion and a P/E ratio of 6.35. Bill Miller invested $66 million in NLY shares (see Bill Miller’s favorite stocks).

NextEra Energy Inc is an electric power company in North America and the United States. NEE was purchased by one insider since March. It had a dividend yield of 4.90% and returned 8.37% since the beginning of this year. It has a market cap of $18.1 billion and a P/E ratio of 12.26. Phill Gross and Robert Atchinson invested $67 million in NEE shares.

Disclosure: I am long PM, CTL.

Source: 20 High-Dividend Stocks With Heavy Insider Buying