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

Whenever company insiders such as upper management or members of the board buy company shares, the report their purchases. Analysts view this as a very positive sign because presumably no one knows the company better than they do.

We extended this idea to dividend stocks by running a screen on high dividend yield stocks being bought up by their company insiders over the last six months. We then screened for exceptional profitability, with companies beating their industry averages on gross, operating, and pretax margins.

‪Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

Do you think these stocks pay attractive dividends? Use this list as a starting point for your own analysis.

List sorted by dividend yield.

1. Ames National Corporation (NASDAQ:ATLO): Provides commercial banking services primarily within the central Iowa counties of Boone, Marshall, Polk, and Story. Dividend yield at 2.45%, payout ratio at 35.31%. TTM gross margin at 83.76% vs. industry average at 68.24%. TTM operating margin at 53.44% vs. industry average at 40.04%. TTM pretax margin at 41.29% vs. industry average at 21.62%. Over the last six months, insiders were net buyers of 13,762 shares, which represents about 0.16% of the company's 8.35M share float.

2. Commercial National Financial Corp. (OTCQX:CNAF): Operates as a holding company for the Commercial Bank & Trust of PA that provides various commercial banking and trust services primarily in Pennsylvania. Dividend yield at 4.05%, payout ratio at 43.12%. TTM gross margin at 89.5% vs. industry average at 68.24%. TTM operating margin at 51.75% vs. industry average at 40.04%. TTM pretax margin at 34.7% vs. industry average at 21.62%. Over the last six months, insiders were net buyers of 3,693 shares, which represents about 0.17% of the company's 2.21M share float.

3. Community Trust Bancorp Inc. (NASDAQ:CTBI): Operates as the holding company for Community Trust Bank, Inc. Dividend yield at 3.88%, payout ratio at 48.82%. TTM gross margin at 80.09% vs. industry average at 71.51%. TTM operating margin at 48.66% vs. industry average at 40.74%. TTM pretax margin at 27.5% vs. industry average at 22.4%. Over the last six months, insiders were net buyers of 43,738 shares, which represents about 0.35% of the company's 12.67M share float.

4. Community Bank System Inc. (NYSE:CBU): Operates as the holding company for Community Bank, N. Dividend yield at 3.66%, payout ratio at 49.57%. TTM gross margin at 81.6% vs. industry average at 68.24%. TTM operating margin at 42.92% vs. industry average at 40.04%. TTM pretax margin at 28.74% vs. industry average at 21.62%. Over the last six months, insiders were net buyers of 14,630 shares, which represents about 0.04% of the company's 35.08M share float.

5. SY Bancorp Inc. (NASDAQ:SYBT): Operates as the bank holding company for Stock Yards Bank & Trust Company that provides commercial and personal banking services in Louisville, Kentucky; southern Indiana and Indianapolis, Indiana; and Cincinnati, Ohio. Dividend yield at 3.23%, payout ratio at 42.47%. TTM gross margin at 76.6% vs. industry average at 71.51%. TTM operating margin at 43.39% vs. industry average at 40.74%. TTM pretax margin at 26.66% vs. industry average at 22.4%. Over the last six months, insiders were net buyers of 5,298 shares, which represents about 0.04% of the company's 12.34M share float.

6. First Financial Bankshares Inc. (NASDAQ:FFIN): Provides commercial banking products and services primarily in Texas. Dividend yield at 2.67%, payout ratio at 43.44%. TTM gross margin at 93.07% vs. industry average at 71.51%. TTM operating margin at 56.95% vs. industry average at 40.74%. TTM pretax margin at 43.59% vs. industry average at 22.4%. Over the last six months, insiders were net buyers of 49,554 shares, which represents about 0.17% of the company's 29.79M share float.

7. Kronos Worldwide Inc. (NYSE:KRO): Engages in the production and marketing of titanium dioxide pigments in North America and Europe. Dividend yield at 2.54%, payout ratio at 44.81%. TTM gross margin at 37.51% vs. industry average at 37.44%. TTM operating margin at 24.9% vs. industry average at 17.49%. TTM pretax margin at 22.89% vs. industry average at 16.54%. Over the last six months, insiders were net buyers of 535,844 shares, which represents about 2.56% of the company's 20.93M share float.

*Insider data sourced from Yahoo Finance, profitability data sourced from Fidelity.

Source: 7 Insider Dividend Stock Picks With Impressive Profitability