5 Dividend Stocks With Strong Buying From Company Insiders

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 |  Includes: GLT, KRO, NL, RE, SHLM
by: Kapitall

Investors often like to follow the buying trends of company insiders because they presumably know more about their companies than any other investors. Insiders include board members and upper management, and their jobs leave them in a unique position to evaluate their company’s stock.

We ran a screen on stocks paying dividend yields above 2% and sustainable payout ratios below 50% for those that have seen 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.

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Do you think these insiders are calling it right on their companies? Use this list as a starting point for your own analysis.

List sorted by dividend yield.

1. NL Industries Inc. (NYSE:NL): Operates in the component products industry in the United States, Canada and Taiwan. Market cap of $703.14M. Dividend yield at 3.53%, payout ratio at 23.34%. Net insider shares purchased over the last six months at 52.89K, which is 0.81% of the company's 6.56M share float. The stock is a short squeeze candidate, with a short float at 6.06% (equivalent to 8.68 days of average volume). The stock has had a couple of great days, gaining 19.13% over the last week.

2. A. Schulman, Inc. (NASDAQ:SHLM):
Specialty Chemicals Industry. Market cap of $585.96M. Dividend yield at 3.26%, payout ratio at 44.73%. Net insider shares purchased over the last six months at 21.42K, which is 0.07% of the company's 29.85M share float. The stock has recently rebounded, and is currently trading 7.56% above its SMA20 and 6.24% above its SMA50. However, the stock still trades 13.35% below its SMA200. The stock has had a couple of great days, gaining 15.36% over the last week.

3. Kronos Worldwide Inc. (NYSE:KRO):
Engages in the production and marketing of titanium dioxide pigments in North America and Europe. Market cap of $2.25B. Dividend yield at 3.09%, payout ratio at 47.89%. Net insider shares purchased over the last six months at 15.29K, which is 0.07% of the company's 21.47M share float. The stock has had a couple of great days, gaining 28.42% over the last week.

4. PH Glatfelter Co. (NYSE:GLT):
Manufactures and sells specialty papers and fiber-based engineered materials in the United States and internationally. Market cap of $654.25M. Dividend yield at 2.52%, payout ratio at 22.18%. Net insider shares purchased over the last six months at 31.0K, which is 0.07% of the company's 45.22M share float. The stock is a short squeeze candidate, with a short float at 8.9% (equivalent to 13.13 days of average volume). The stock has had a couple of great days, gaining 12.24% over the last week.

5. Everest Re Group Ltd. (NYSE:RE):
Underwrites reinsurance and insurance in the United States, Bermuda and international markets. Market cap of $4.38B. Dividend yield at 2.38%, payout ratio at 35.87%. Net insider shares purchased over the last six months at 1.25M, which is 2.84% of the company's 44.05M share float. The stock has gained 0.95% 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.