Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

For a starting point with dividend stocks, one helpful guide is the buying trends of company insiders. These are members of upper management and the company’s board, and because of their positions they know their companies very well. If their outlook on the company is strong enough to influence their personal investing, it’s a signal to take a second look.

We ran a screen on stocks paying dividend yields above 3% and sustainable payout ratios below 50% that are also technically oversold, with RSI(14) below 40. We screened these stocks 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 six 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.

Click to enlarge


Do you agree with these insiders? Use this list as a starting point for your own analysis.

List sorted by net insider purchases as a percent of share float.

1. Teche Holding Company (TSH): Operates as the holding company for Teche Federal Bank that offers various financial services in Louisiana. Market cap of $61.38M. Dividend yield at 4.86%, payout ratio at 42.64%. RSI(14) at 39.01. Net insider shares purchased over the last six months at 8.86K, which is 0.59% of the company's 1.51M share float. The stock has gained 0.58% over the last year.

2. BCB Bancorp Inc. (BCBP):
Operates as the holding company for BCB Community Bank that provides banking products and services in New Jersey. Market cap of $84.73M. Dividend yield at 5.25%, payout ratio at 27.45%. RSI(14) at 35.23. Net insider shares purchased over the last six months at 19.24K, which is 0.25% of the company's 7.77M share float. The stock is currently stuck in a downtrend, trading 7.62% below its SMA20, 9.69% below its SMA50, and 14.74% below its SMA200. The stock has gained 7.14% over the last year.

3. Commercial National Financial Corp. (OTCQB:CNAF):
Operates as a holding company for the Commercial Bank & Trust of PA that provides various commercial banking and trust services primarily in Pennsylvania. Market cap of $56.49M. Dividend yield at 5.27%, payout ratio at 45.68%. RSI(14) at 36.01. Net insider shares purchased over the last six months at 3.53K, which is 0.16% of the company's 2.21M share float. The stock has gained 23.13% over the last year.

4. U.S. Global Investors, Inc. (GROW):
A publicly owned investment manager. Market cap of $97.83M. Dividend yield at 3.79%, payout ratio at 40.81%. RSI(14) at 36.38. Net insider shares purchased over the last six months at 17.20K, which is 0.13% of the company's 13.11M share float. The stock is currently stuck in a downtrend, trading 12.96% below its SMA20, 14.32% below its SMA50, and 22.41% below its SMA200. The stock has gained 2.76% over the last year.

5. Ecology & Environment, Inc. (EEI):
Provides professional services to the government and private sectors worldwide. Market cap of $65.72M. Dividend yield at 3.10%, payout ratio at 26.22%. RSI(14) at 37.68. Net insider shares purchased over the last six months at 2.0K, which is 0.08% of the company's 2.40M share float. The stock has gained 33.85% over the last year.

6. Kronos Worldwide Inc. (KRO):
Engages in the production and marketing of titanium dioxide pigments in North America and Europe. Market cap of $1.75B. Dividend yield at 3.97%, payout ratio at 47.89%. RSI(14) at 27.82. Net insider shares purchased over the last six months at 15.29K, which is 0.07% of the company's 21.48M share float. The stock is currently stuck in a downtrend, trading 23.91% below its SMA20, 34.51% below its SMA50, and 43.79% below its SMA200. It has been a rough couple of days for the stock, losing 12.19% over the last week.

*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.

Source: 6 Oversold, High Dividend Yield Stocks Being Bought Up By Insiders