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It has been my experience that many high yielding dividend stocks are high yielding because of a belief that the stock's dividend is going to be cut. But, it has also been my experience that some high yielding stocks turn out to be winners. So, the intention here is to find high dividend stocks with very recent insider buying that might just end up being amongst those winners. Four stocks passed my screening criteria.

Methodology

First, I ran a screen that sorted out all stocks with a dividend currently yielding over 8%. Then, I went through all of them to find any that might have insider purchases totaling over $40,000 in the last two weeks.

I ran an insider screen because insiders (officers, directors, employees and large shareholders who are required to report their trades to the SEC) are unlikely to invest a lot of money in their company if they thought the dividend was not stable or that the stock was not headed up. I also thought it was also important to use a short time frame to minimize the likelihood that the stock had already run up.

After all was said and done, there were only 4 stocks that met that criteria and two that standout when considering analyst recommendations and price gains that may have already occurred. Three are business development companies and one is a pipeline company. I did the original screening for stocks with dividends over 8% through Schwab. I got the insider, share data, and analyst recommendation information from Morningstar and Yahoo finance.

Stocks that meet the criteria and analyst ratings

Horizon Technology Finance Corporation (NASDAQ:HRZN) is a Business Development Company that provides secured loans to developmental companies in the technology sector including health care and clean-tech industries. The dividend yield was 11.19% on September 17th.

Six different insiders have purchased shares Since August 31, 2012 totaling $42,016. The price on August 31st was at $16.75. The last insider purchase was at a price of $16.22 on September 13th. The closing price on September 14th was $16.16. Yahoo analysts give it 1 strong buy, 2 buys, and 1 hold. This stock looks like one that has not been noticed much by investors yet, and may be flying under the radar. Based on only the information above, this one looks promising.

NuStar Energy L.P. (NYSE:NS) is a pipeline company that stores, refines, and transports crude oil and oil products. The dividend yield was 8.76% on September 17th.

Three different insiders have purchased shares Since August 31, 2012 totaling $24,080,571. The price on August 31st was at $50.72. The last insider purchase was at a price of $48.94 on September 9th. The closing price on September 14th was $49.94. Yahoo analysts give it 1 buy, 9 holds, and 3 underperform. This stock looks like one that may be flying under the radar because of lower analyst ratings. Based on only the information above, this one looks promising, but the analyst ratings suggest caution.

Prospect Capital Corporation (NASDAQ:PSEC) is a Business Development Company that focuses on making secured loans to private and public companies in the energy and industrial sectors. The dividend yield was 10.13% on September 17th.

Two different insiders have purchased shares Since August 31, 2012 totaling $274,720. The price on August 31st was at $11.43. The last insider purchase was at a price of $11.73 on September 7th. The closing price on September 14th was $12.07. Yahoo analysts give it 1 strong buy, 5 holds, and 1 underperform. This stock looks like it is being noticed by investors and has already risen over 5% since August 31st. This may limit the upside.

New Mountain Finance Corporation (NYSE:NMFC) - is a Business Development Company that generates current income and capital appreciation through the sourcing and originating of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. In some cases, investments may also include equity interests.. The dividend yield was 9.14% on September 17th.

One insider has purchased shares Since August 31, 2012 totaling $214,000. The price on August 31st was at $14.82. The last insider purchase was at a price of $14.68 on September 6th. The closing price on September 14th was $14.90. Yahoo analysts give it 4 strong buys and 1 hold. This stock looks like one that has not been noticed much by investors yet and may be flying under the radar. Based on only the information above, this one looks very promising.

Follow up and closing thoughts

I will revisit these four stocks in about a month or two to see how all of this pans out relative to the Dow. If it works out well, I will run the screens again and follow up with another article.

I believe in putting your money where your mouth is. I purchased HRZN and NMFC today based on the above information.

This is my first article that I have written for Seeking Alpha, and I really appreciate your consideration. If I have made any "rookie" mistakes, let me know and I will be glad to adjust it. - Thanks!

Source: 4 High-Dividend Stocks With Very Recent Insider Buying