Following insider buying is a great way to get ahead of a stock’s move higher. No one has a better perspective on a company’s outlook than its CEO. When a CEO or other executives start buying up stock it can be an indication that a good story is about to unfold. Seeing these employees invest their own money often gives outside investors confidence to buy the stock.
Each of these stocks has been bought up by internal executives or directors this month. They all have a dividend yield 10% or more which makes them the highest yielding stocks with insider buying.
Niska Gas Storage Partners (NKA)
VP Jason Kulsky bought 10,000 shares of NKA on 11/14. Niska Gast Storage Partners is a natural gas storage company that stores gas for many different types of customers including natural gas producers, financial institutions, pipelines and power generators. Niska has just over 200 billion cubic feet of storage capacity in North America.
Niska has a dividend yield of 14.4%. They just started paying dividends in 2010. NKA has a market cap of 634M and a P/E ratio of 11.14.
Full Circle Capital Corp (FULL)
John Stuart bought 1,000 shares of FULL on 11/14 (just around $7,000 worth). Full Circle Capital Corp is a closed-end investment company that invests in the debt and equity securities of micro cap companies with revenues between $3 million to $75 million.
FULL has a dividend yield of 14% and pays dividends monthly. They started paying dividend in 2010 and are currently paying a monthly dividend of $.077 a month. They have a P/E ratio of 12.5 and a market cap of just 43M.
Apollo Commercial Real Estate Finance (ARI)
Mark Biderman, a director, bought 5000 shares of ARI on 11/11. Apollo Commercial Real Estate is a REIT that originates, buys and invests in commercial real estate debt, senior performing commercial mortgage loans and mortgage backed securities.
ARI has a dividend yield of 11.8% and has been paying dividends since 2010. They have a market cap of 281M and a P/E ratio of 11.8.
Two Harbors Investment (TWO)
Vice President and CFO Jeffery Stolt bought 3000 shares of TWO on 11/10. Other top executives have also been buying up shares this month. Two harbors is a REIT that invests in mortgage backed securities with a special focus on residential mortgage market sectors.
TWO has a dividend yield of 17.3%. They increased their dividend in 2011 by 16%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.