Insiders are buying shares in these high-dividend stocks:
Get the 411 on High-Yield Dividend Stocks CEOs Can't Resist
Listen up, 'cause we're about to drop some knowledge on four stock picks that have caught the interest of top execs - and their wallets! These high-yield dividend stocks are pumping out some tasty returns, and we ain't talking about the usual suspects.
When C-suite types start shelling out big bucks for shares, we take notice. And, let's be honest, we're extra intrigued when they're talking high-yielding dividends! But what is the real deal with these stocks, and are they worth a second look?
Northern Oil & Gas (NOG): Dividend Yield: 6.0%
You know what they say—when the pros think it's going up, it's probably a good idea to pay attention. Insider buying is a surefire sign that these bosses believe the value is still on the rise—especially when we're talking high-yield dividend stocks!
Most of us have seen NOG's stock take a pretty serious dive since early December, which might lead to some questioning. Red-flag headlines, anyone? We didn't think so. Sure, the company didn't meet expectations for Q4, but the shares have rebounded softly since, and there was no Wall Street fainting spell later in December upon acquisition rumors.
So, what gives? Executives like Nicholas O'Grady, Stanley Lasher, Bahram Akradi, and O'Grady again (a regular buyer, it seems) all weighed in with significant purchases around NOG's Q1 earnings announcement. With these hefty investments, even at a young dividend program that started in 2021, the execs are likely reminding us what we missed: while the stock may have taken a hit, it's still fairing well, with a hefty yield, coupled with strong growth prospects, making it a smart buy.
Sinclair (SBGI): Dividend Yield: 6.3%
For those of you keeping score, SBGI has been a loser for more than a decade, with the exception of a quick pop in 2019. But don't dismiss this stock too soon, as we've got investor-in-chief and Executive Chairman David Smith on a shopping spree!
In the last few weeks, Smith has dropped more than $4 million on SBGI shares—a move that has helped boost the stock's return to more than 6% in a yield. Beyond that, though, it's tricky to see long-term appeal. The company's top and bottom lines are expected to retreat in 2025 following heavy campaign ad spending last year, and there's little to suggest any sudden catalysts on the horizon.
So, is Smith crazy, or does he know something we don't? While it might be difficult to predict SBGI's next move with confidence, one things for sure—Smith's taking a chance on what he believes is a smart buy.
Ready Capital (RC): Dividend Yield: 9.9%
When we're talking high-yield dividend stocks, RC takes the cake with a yield of 9.9%! If that's not enough to peak your interest, how about the fact that a whole squad of executives swooped in to buy stock following some less-than-stellar Q4 results?
President Jack Ross, CEO Thomas Capasse, Chief Credit Officer Adam Zausmer, COO Gary Taylor, Director Nathan Gilbert, and CFO Andrew Ahlborn all dropped some serious cash on RC shares within a week of the disappointing report. And, let's be honest, who doesn't love a good bargain?
While the stock may have taken a hit following the earnings report, the executives' investment shows that the long-term prospects for RC remain strong.
NETSTREIT (NTST): Dividend Yield: 5.4%
When we see insiders buying upswing in their stock, we can't help but feel a swell of confidence. That's just what we've seen at NETSTREIT—a retail REIT specializing in single-tenant net-lease deals.
So, what's the deal? The CEO and CFO are snatching up shares while the stock rapidly bounces back from the bottom. And, for those of you keeping score, the stock still trades near the lower end of its five-year range!
Looking for a best kept secret among high-yield dividend stocks? NTST may just be it!
Take a gander at these winners and decide for yourself—are they worth a second (or first!) look? Whether you're a seasoned investor or just starting out, you can't go wrong with a little research and the insider scoop on the hottest stocks on the market. Happy hunting!
Disclosure: none
Bonus Insights:
Hey there, stock seekers! Here's some extra knowledge on high-yield dividend stocks to keep in your back pocket:
- To find recent insider buying patterns for specific stocks, you can use financial databases such as Bloomberg, SEC EDGAR filings, or financial websites like Yahoo Finance or Finviz. Insider transactions, including purchases and sales, are reported to the Securities and Exchange Commission (SEC) and can be accessed through these platforms.
- Insider buying decisions can be influenced by several factors, including company performance, valuation, company confidence, and market conditions. Insider buying is a sign that executives and high-level managers believe the company's future prospects are brighter than current market conditions suggest, and the stock is undervalued or worthy of investment.
- Red-flag headlines and less-than-stellar company reports don't always mean that a stock is a bad investment. Sometimes, these issues can create opportunities for investors to buy low during market downturns, when stock prices are lower, and the yield, higher.
- High-yield dividend stocks can provide a steady source of income, as well as substantial potential for capital appreciation over time when the company is well-run, stable, and aligned with market trends. As always, do your research and make informed decisions when investing in high-yield dividend stocks.
Insiders, such as Nicholas O'Grady, Stanley Lasher, Bahram Akrady, and others, have been buying shares in Northern Oil & Gas (NOG) despite the stock's dip, indicating their belief in the stock's long-term prospects and high yield. Although Sinclair (SBGI) has been a poor performer for over a decade, its investor-in-chief, David Smith, has purchased over $4 million worth of shares, suggesting a potential turnaround. Ready Capital (RC) stands out with a dividend yield of 9.9%, and a group of executives have recently invested in the company following Q4 results, signaling their confidence in its long-term prospects. Insiders at NETSTREIT, a retail REIT, have been buying shares as the stock recovers from a market downturn, potentially making it a hidden gem among high-yield dividend stocks.
