I screened with Finviz for companies that have higher than 10% dividend yield and checked if the companies had any insider buys during the last three months. I wrote an article titled "7 High-Yielding Companies With Insider Buying During The Last 3 Months" on September 17. Here is a look at three additional companies that I found:
1. MFA Financial (MFA) is a real estate investment trust primarily engaged in the business of investment, on a leveraged basis, in Agency and Non-Agency residential mortgage-backed securities.
- Ronald Freydberg purchased 4,000 shares on August 9 and currently holds 413,295 shares of the company. Ronald Freydberg is Executive Vice President of the company.
- Shira Finkel purchased 1,500 shares on August 9 and currently holds 29,008 shares of the company. Shira Finkel serves as Senior Vice President and Corporate Secretary of the company.
- Craig Knutson purchased 4,000 shares on August 8 and currently holds 248,895 shares of the company. Craig Knutson is Executive Vice President of the company.
- Sunil Yadav purchased 1,300 shares on August 8 and currently holds 86,170 shares of the company. Sunil Yadav is Senior Vice President of the company.
- William Gorin purchased 2,000 shares on August 8 and currently holds 596,929 shares of the company. William Gorin is President of the company.
The company reported the second-quarter financial results on August 6 with the following highlights:
|Net income||$72.3 million|
|Quarterly dividend||$0.23 per share|
|Book value||$7.45 per share|
The stock has a $20.75 price target from the Point and Figure chart. There have been 7 insider buy transactions this year. The latest insider sell transaction was in May 2011. The stock is trading at a forward P/E ratio of 9.99 and has a 10.71% dividend yield. I would expect the book value of $7.45 per share to act like a support for the stock.
2. StoneMor Partners (STON), headquartered in Levittown, Pennsylvania, is an owner and operator of cemeteries and funeral homes in the United States, with 276 cemeteries and 85 funeral homes in 28 states and Puerto Rico. StoneMor is the only publicly traded deathcare company structured as a partnership. StoneMor's cemetery products and services, which are sold on both a pre-need (before death) and at-need (at death) basis, include: burial lots, lawn and mausoleum crypts, burial vaults, caskets, memorials, and all services which provide for the installation of this merchandise.
- Howard Carver purchased 1,500 shares on September 4 and currently holds 6,060 shares of the company. Howard Carver serves as a director of the company.
- Robert Hellman purchased 416 shares on September 4 pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on August 13 and currently holds 4,998 shares of the company. Robert Hellman serves as a director of the company.
- Lawrence Miller purchased 4,350 shares on August 15 and currently controls 184,050 shares of the company. Lawrence Miller has served as Chief Executive Officer, President and Chairman of the Board since the company's formation in April 2004.
- Martin Lautman purchased 10,000 shares on August 9 and currently holds 124,839 shares of the company. Martin Lautman serves as a director of the company.
The company reported the second-quarter financial results on August 7 with the following highlights:
|Net loss [GAAP]||$2.1 million|
|Quarterly dividend||$0.585 per share|
StoneMor stated on September 17 that it expects to maintain its distribution of at least $0.585 per unit for the remainder of 2012 which represents a sustainable level based on current business conditions. The expected distribution equals the distribution paid in the second quarter of 2012. Commenting on the announcement, StoneMor's President and CEO, Lawrence Miller said:
"We recently stated our intention to provide ongoing updates on the company's progress and to provide additional information to help investors better understand our company. Affirming our distribution is a key part of that communication strategy. Although the quarter is not over, we feel confident that, based on our results to date we will be able to maintain our distribution.
"We determine the distribution based on the operating performance of the company and the resultant Available Cash at the end of the quarter. StoneMor has consistently paid quarterly distributions since its initial public offering in September 2004 using this distribution policy and intends to continue this policy into the future. Given the solid performance this year so far and what we expect will be continued good performance, we are comfortable with affirming our distribution of at least $0.585 per unit through the end of the year."
The stock has a $43 price target from the Point and Figure chart. There have been 11 insider buy transactions and three insider sell transactions this year. The stock has a 10.29% dividend yield. I would recommend buying the stock from the current level.
3. Western Asset Mortgage Capital Corporation (WMC) is a REIT that invests primarily in Agency RMBS, which are residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. Government agency (such as GNMA) or a U.S. Government-sponsored entity (such as FNMA or FHLMC). The company may opportunistically supplement its portfolio by investing in its potential target assets, which include residential mortgage-backed securities that are not guaranteed by a U.S. Government agency or sponsored entity, commercial mortgage-backed securities and other asset-backed securities. The company is externally managed and advised by Western Asset Management Company, an investment advisor registered with the SEC and a wholly-owned subsidiary of Legg Mason (LM).
James Hirschmann purchased 1,000 shares on September 17. James Hirschmann is the Chairman of the Board.
The company reported the second-quarter financial results on August 13 with the following highlights:
|Net income||$4.3 million|
|Quarterly dividend||$0.85 per share|
|Book value||$22.68 per share|
The company announced on September 20 that its Board of Directors had declared a cash dividend of $0.85 per share for the third quarter of 2012. This dividend is payable on October 25, 2012 to common shareholders of record as of October 1, 2012, with an ex-dividend date of September 27, 2012. The company also announced that its estimated book value per share, as of September 14, 2012, was $22.68.
There have been eight insider buy transactions since the Initial Public Offering in May 2012. There has not been any insider selling since the IPO. The stock is trading at a 14.1% dividend yield. I would expect the book value of $22.68 per share to act like a support for the stock.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in MFA over the next 72 hours.