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Stocks with dividend yields are particularly appealing for long-term "buy and holds", because the cash payout by itself provides a good margin of safety for the investment. If timed correctly, investors can enjoy both share price increases, as well as dividend payouts. This is especially appealing with insiders buying, because insiders buy for one reason: they are signaling that they have confidence in the company's future performance. Insiders, especially executives and directors of companies tend to know their company very well. Tracking their stock purchase activities is a very good point to start looking for lucrative returns.

This article analyzes insider purchase activities relating to dividend yielding stocks during the past week. I have written a short analysis of each company. However, these are not buying and selling recommendations. Of course, insiders could be wrong. It is nevertheless a good starting point to add those stocks to one's watch list.

Hawaiian Electric Industries Inc. (HE) is an electric utilities company. It has a market cap of $2.77 billion. Its stock closed at $28.69 per share on Friday. Over the past week, Hawaiian Electric Industries Inc. had one insider who purchased a total of 283 shares at the total value of $8,103. The current price is fairly close to its 52-week high. Its P/E ratio of 18.63 is on the expensive side. Investors should exercise some caution because of this valuation. The PEG ratio is way above one, something to be cautious about.

Hawaiian Electric Industries Inc. has an enterprise value / EBITDA ratio of 8.99. This is a reasonable valuation. Its profit margin was 4.43% over the past year. I believe Hawaiian Electric Industries Inc.'s operating margin of 9.03% is acceptable.

The company had a net income of $148.08 million and EBITDA of $468.88 million on revenue of $3.35 billion. Both its revenue and earnings grew in double digits over the latest quarter, by 14.70% and 34.60%, respectively. Recent trading volume has been low. This month, 2.64 million shares are being shorted. The short ratio of Hawaiian Electric Industries Inc. is 5.30, accounting for 2.80% of floating shares. Over the past five years, the average yield has been 5.40.

H&R Block, Inc. (HRB) is a tax services company. It has a market cap of $4.43 billion. Its stock closed at $16.15 per share on Friday. Over the past week, H&R Block Inc. had one insider who purchased a total of 1,200 shares at the total value of $19,208. Its stock price is about 7.50% below its 52-week high, usually a positive technical indicator on the company. Its P/E ratio of 18.13 is on the expensive side. Investors should use some caution because of this valuation.

This company's value seems reasonable with a sub-one PEG ratio, suggesting its growth is outpacing its valuation. H&R Block has an enterprise value / EBITDA ratio of 5.15. Since EV/EBITDA ratio already considers the debt burden, the valuation is quite cheap. Its profit margin was 9.52% over the past year. I like H&R Block Inc.'s operating margin of 21.42%, a good sign for the company's financial health.

The company had a net income of $345.51 million and EBITDA of $691.67 million on revenue of $2.79 billion. Its revenue declined by 1.40%, and its net income declined by 11.00% during the most recent quarter. This month, 22.50 million shares are being shorted. The short ratio of H&R Block Inc. is 5.40, accounting for 7.40% of floating shares. The trailing dividend yield is 4.60. Over the past five years, the average yield is 3.70.

Lexmark International Inc. (LXK) is a printer company. It has a market cap of $1.92 billion. Its stock closed at $27.05 per share on Friday. Over the past week, Lexmark International Inc. had one insider who purchased a total of 896 shares at the total value of $23,690. At a P/E ratio of 6.88, the stock appears fairly cheap in valuation. Lexmark International Inc. has an enterprise value / EBITDA ratio of 2.39, very low. Its profit margin was 7.22% over the past year.

The company had a net income of $298.40 million and EBITDA of $694.20 million on revenue of $4.13 billion. Its revenue declined by 4.10%, and its net income declined by 27.00% during the most recent quarter. the problem Lexmark faces is deteriorating businesses in printing. It may be a trend that is difficult to change. Its operating cash flow is $397.90 million, and its free cash flow is $229.30 million.

Thinning trading volume suggests that trading interest in the company is waning. This month, 7.00 million shares are being shorted. The short ratio of Lexmark International Inc. is 7.40, accounting for 11.20% of floating shares. Such a high short ratio means two things: 1. the market is bearish about the stock in general, and 2. short squeeze could easily happen with suitable news. The trailing dividend yield is 2.90.

Marchex, Inc. (MCHX) is a marketing services company. It has a market cap of $132.06 million. Its stock closed at $3.93 per share on Friday. Over the past week, Marchex Inc. had one insider who purchased a total of 5,000 shares at the total value of $18,300. The PEG ratio is slightly above one, not much a concern of valuation. Its price/book ratio is 0.78.

The company is selling below book value, something worth further investigation: is the company undervalued or are its assets overvalued? Marchex Inc. has an enterprise value / EBITDA ratio of 11.26. This is a reasonable valuation. The company is currently losing money operationally. The trading volume has been consolidating recently. This month, 2.56 million shares are being shorted. The short ratio of Marchex Inc. is 19.00, accounting for 11.30% of floating shares. The trailing dividend yield is 2.10. Over the past five years, the average yield is 1.20.

Methode Electronics Inc. (MEI) is a diversified electronics company. It has a market cap of $314.78 million. Its stock closed at $8.50 per share on Friday. Over the past week, Methode Electronics Inc. had 4 insiders who purchased a total of 9,088 shares at the total value of $71,575. Multiple insider purchase occasions are usually a positive sign. This company's value seems reasonable with a sub-one PEG ratio, suggesting its growth is outpacing its valuation. Its price/book ratio is 1.26.

Methode Electronics Inc. has an enterprise value / EBITDA ratio of 10.30. Its profit margin was 1.80% over the past year. Methode Electronics Inc. has a very low operating margin of 2.44%. The company had a net income of $8.38 million and EBITDA of $27.52 million on revenue of $465.10 million. Its operating cash flow was $24.83 million, and its free cash flow was $14.76 million. The trading volume has been stable recently. This month, 1.21 million shares are being shorted. The trailing dividend yield is 3.20. Over the past five years, the average yield is 2.90.

Middlesex Water Co. (MSEX) is a water utilities company. It has a market cap of $298.18 million. Its stock closed at $18.98 per share on Friday. Over the past week, Middlesex Water Co. had one insider who purchased a total of 265 shares at the total value of $4,992. The stock price has been moving in a narrow band over the past year. Its P/E ratio of 24.03 is on the expensive side. Investors should use some caution because of this valuation. The high PEG ratio suggests that the market expectation may be too high to become reality.

Middlesex Water Co. has an enterprise value / EBITDA ratio of 13.60. Its profit margin was 12.42% over the past year. I like Middlesex Water Co.'s operating margin of 22.94%, a good sign for the company's financial health. The company had a net income of $12.42 million and EBITDA of $33.78 million on revenue of $101.62 million. Its revenue declined by 1.90%, and its net income declined by 31.30% during the most recent quarter. The trailing dividend yield is 3.90. Over the past five years, the average yield is 4.00.

SY Bancorp Inc. (SYBT) is a Southeast bank. It has a market cap of $335.65 million. Its stock closed at $24.20 per share on Friday. Over the past week, SY Bancorp Inc. has 2 insiders who purchased a total of 489 shares at the total value of $11,818. Multiple insider purchase occasions are usually a positive sign. Its stock price is 1.22% below 52-week high, a plus on the technical side. It has a reasonable P/E ratio of 13.60. Its price/book ratio is 1.77. It has a profit margin of 26.59%.

I like SY Bancorp Inc.'s operating margin of 38.73%, a good sign for the company's financial health. Its revenue grew by 5.30%, and its net income improved by 18.40% during the most recent quarter. The recent trading volume is about average. This month, 0.71 million shares are being shorted. The short ratio of SY Bancorp Inc. is 31.00, accounting for 5.50% of floating shares. A short squeeze can easily happen to this stock. The trailing dividend yield is 3.00. Over the past five years, the average yield is 3.00.

Worthington Industries, Inc. (WOR) is a steel & iron company. It has a market cap of $1.48 billion. Its stock closed at $21.85 per share on Friday. Over the past week, Worthington Industries Inc. had one insider who purchased a total of 500 shares at the total value of $10,294. Its stock price is about 7.65% below its 52-week high, usually a positive technical indicator on the company. It has a reasonable P/E ratio of 13.24.

Worthington Industries Inc. has an enterprise value / EBITDA ratio of 12.08. Its profit margin was 4.56% over the past year. The company had a net income of $115.60 million and EBITDA of $163.67 million on revenue of $2.53 billion. Its revenue grew by 11.80%, and its net income improved by 0.30% during the most recent quarter. The trading volume has been stable recently. This month, 4.81 million shares are being shorted. The short ratio of Worthington Industries Inc. is 8.00, accounting for 8.80% of floating shares. The trailing dividend yield is 2.20. Over the past five years, the average yield has been 3.20.

Source: 8 Stocks With Strong Dividend Yields And Insider Buying