For a look at today's most popular dividend stocks, one idea is to consider insider buying. Company insiders, such as members of the board and upper management, report when they buy shares of their company. When they do, this indicates that they are optimistic on their company's outlook and may view the stock as undervalued.
We ran a screen on dividend stocks with high liquidity (measured by current ratios above 3) for those with the most 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.
Do you think these stocks pay reliable dividends? Use this list as a starting point for your own analysis.
List sorted by net insider purchases as a percent of share float.
1. Micrel Inc. (MCRL): Designs, develops, manufactures, and markets high-performance analog power, mixed-signal, and digital integrated circuits (ICS) primarily in North America, Europe, and Asia. Market cap of $648.61M. Dividend yield at 1.52%, payout ratio at 21.18%. Current ratio at 3.76. Net insider shares purchased over the last six months at 45.30K, which is 0.09% of the company's 49.63M share float. The stock is a short squeeze candidate, with a short float at 5.18% (equivalent to 6.06 days of average volume). The stock has lost 21.5% over the last year.
2. Titanium Metals Corporation (TIE): Mills, manufactures, and distributes titanium and titanium alloys. Market cap of $2.81B. Dividend yield at 1.87%, payout ratio at 24.63%. Current ratio at 5.58. Net insider shares purchased over the last six months at 61.0K, which is 0.08% of the company's 72.92M share float. The stock has had a couple of great days, gaining 5.87% over the last week.
3. Badger Meter Inc. (BMI): Engages in manufacturing and marketing liquid flow measurement and control technology products worldwide. Market cap of $484.14M. Dividend yield at 2.0%, payout ratio at 36.10%. Current ratio at 3.98. Net insider shares purchased over the last six months at 7.69K, which is 0.05% of the company's 14.35M share float. The stock is a short squeeze candidate, with a short float at 8.07% (equivalent to 9.06 days of average volume). The stock has had a couple of great days, gaining 5.33% 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.