When insiders buy, it is purely for one reason: They believe that the stock is going higher and that they will make money. So, why not taking a look at the highest-yielding dividend stocks insiders were buying.
Below are 3 of the highest-yielding dividend payers whose insiders are expressing confidence in their companies and putting their money where their mouth is:
1. Artisan Partners Asset Management (NYSE: APAM) – Dividend yield: 9.2%
Independent Director Tench Coxe, bought $10 million worth of Artisan Partners’ stock on December 14, more than tripling his holdings.
2. Claros Mortgage Trust (NYSE: CMTG) – Dividend yield: 8.7%
Claros Mortgage Trust just went public in November. When a company goes public, executives often sell shares and cash out. But not Richard Mack, CEO and chairman. In December, he bought $1.9 million worth of shares in the open market, increasing his holdings by more than 10%.
3. Starwood Property Trust (NYSE: STWD) – Dividend yield: 7.7%
CEO, Barry Sternlicht, bought 217,500 shares worth more than $5 million on December 20. On the same day, the company’s president, Jeffrey DiModica, acquired 6,500 shares for more than $148,000.
Insider buying is not a guarantee that a stock will go higher. But when the leaders of a company buy shares with their own money, that is a vote of confidence and an indication that business is strong. Additionally, when the company pays dividends, the insiders, who add shares to their holding do not expect based on their knowledge that dividend payments will be reduced because they want to get another large pay-check every quarter.
Sven Franssen