Defensive investors like to purchase stocks with high dividends to generate income and protect themselves from inflation. We are concerned about the Fed’s inflationary monetary policy and therefore we encourage the investors to play defensively. In addition, corporate insiders have material non-public information and they sometimes trade based on such information. Other times they have an edge because they know their companies and industries better than almost all other investors. We believe that by imitating the stock picks of these smartest investors in the world, investors are more likely to beat the market in the long term.
Below we compiled a list of high dividend stocks insiders are crazy about. All companies have at least $2 billion market cap, dividend yield higher than 5%, and were purchased by at least 2 insiders over the past three months. The market data is sourced from Finviz.
Ticker | Company | Dividend Yield | YTD Return | No. of Insiders |
MFA Financial, Inc. | 14.29% | -8.97% | 11 | |
Chimera Investment | 17.33% | -21.67% | 7 | |
Cincinnati Financial Corp. | 6.22% | -14.86% | 6 | |
First Niagara Financial Gr | 6.84% | -30.64% | 6 | |
Ares Capital Corporation | 10.36% | -12.32% | 5 | |
CenturyLink, Inc. | 8.63% | -23.21% | 4 | |
Frontier Communications | 12.23% | -32.27% | 4 | |
Old Republic Intl | 8.00% | -32.74% | 4 | |
Linn Energy, LLC | 7.79% | -0.56% | 3 | |
Windstream Corporation | 8.43% | -9.74% | 3 | |
DNP Select Income Fund Inc. | 7.85% | 15.45% | 3 | |
Energy Transfer Equity, L.P. | 6.98% | -4.43% | 2 | |
NuStar Energy L.P. | 8.14% | -18.59% | 2 | |
Inergy, L.P. | 11.06% | -31.17% | 2 | |
Regency Centers Corporation | 5.17% | -12.45% | 2 | |
Arthur J Gallagher & Co. | 5.06% | -7.05% | 2 | |
Hudson City Bancorp, Inc. | 5.82% | -55.39% | 2 | |
Natural Resource Partners | 8.29% | -17.64% | 2 | |
Spectra Energy Partners, | 6.63% | -10.86% | 2 | |
Alliance Holdings GP, L.P. | 5.34% | -6.15% | 2 | |
Hawaiian Electric Industries | 5.19% | 8.94% | 2 |
Here are the top 11 stocks on the list with the most insider purchases.
MFA Financial, Inc. (MFA): MFA Financial is engaged in the business of investing, in residential Agency and Non-Agency mortgage-backed securities. MFA has a dividend yield of 14.29% and lost 8.97% since the beginning of this year. It was purchased by 11 insiders over the past three months. It has a market cap of $2.5B and a P/E ratio of 7.29. Charles Clough had $11 million invested in MFA (check out Clough’s top stock picks).
Chimera Investment Corporation (CIM): Chimera Investment Corporation invests in residential mortgage-backed securities, residential mortgage loans, commercial mortgage loans, real estate-related securities and various other asset classes. CIM has a dividend yield of 17.33% and lost 21.67% since the beginning of this year. It was purchased by 7 insiders over the past three months. It has a market cap of $3.1B and a P/E ratio of 5.17.
Cincinnati Financial Corp. (CINF): Cincinnati Financial Corporation is engaged in property casualty insurance marketed through independent insurance agents. CINF has a dividend yield of 6.22% and lost 14.86% since the beginning of this year. It was purchased by 6 insiders over the past three months. It has a market cap of $4.2B and a P/E ratio of 14.31. Jean-Marie Eveillard had $336 million of CINF shares.
First Niagara Financial Group Inc. (FNFG): First Niagara Financial Group, Inc. provides a range of retail and commercial banking, as well as other financial services. FNFG has a dividend yield of 6.84% and lost 30.64% since the beginning of this year. It was purchased by 6 insiders over the past three months. It has a market cap of $2.8B and a P/E ratio of 13.17. Jim Simons had $16 million of FNFG shares (see Jim Simons’ top stock picks).
Ares Capital Corporation (ARCC): Ares Capital is a closed-end, non-diversified management investment company. ARCC has a dividend yield of 10.36% and lost 12.32% since the beginning of this year. It was purchased by 5 insiders over the past three months. It has a market cap of $2.8B and a P/E ratio of 6.04. Scott Scher & Michael Prober had $40 million invested in ARCC.
CenturyLink, Inc. (CTL): CenturyLink is an integrated communications company. CTL has a dividend yield of 8.63% and lost 23.21% since the beginning of this year. It was purchased by 4 insiders over the past three months. It has a market cap of $20.7B and a P/E ratio of 14.23. Phill Gross and Robert Atchinson and $111 million invested in CTL. Steven Cohen also invested more than $100 million in CTL stocks (see Steve Cohen’s top stock picks).
Frontier Communications Corporation (FTR): Frontier is a communications company. FTR has a dividend yield of 12.23% and lost 32.27% since the beginning of this year. It was purchased by 4 insiders over the past three months. It has a market cap of $6.1B and a P/E ratio of 38.31 Bernard Horn and D. E. Shaw both had over $30 million of FTR.
Old Republic International Corp. (ORI): Old Republic is engaged in the single business of insurance underwriting. ORI has a dividend yield of 8.00% and lost 32.74% since the beginning of this year. It was purchased by 4 insiders over the past three months and has a market cap of $2.2B. Alan Fournier and Ric Dillon both invested more than $50 million in ORI.
Linn Energy, LLC (LINE): Linn Energy is an independent oil and natural gas company. LINE has a dividend yield of 7.79% and lost 0.56% since the beginning of this year. It was purchased by 3 insiders over the past three months and has a market cap of $6.3B. Leon Cooperman had $159 million of LINE stocks.
Windstream Corporation (WIN): Windstream Corporation is a communications and technology solutions provider. WIN has a dividend yield of 8.43% and lost 9.74% since the beginning of this year. It was purchased by 3 insiders over the past three months. It has a market cap of $6.1B and a P/E ratio of 21.56. Jim Simons had $32 million of WIN shares.
DNP Select Income Fund Inc. (DNP): DNP Select Income Fund is a closed-end diversified management investment company. DNP has a dividend yield of 7.85% and gained 15.45% since the beginning of this year. It was purchased by 3 insiders over the past three months. It has a market cap of $2.4B and a P/E ratio of 4.48.
