Buy These 4 Dividend Stocks Cheaper Than Insiders! 🔥

Insiders are Buying These Stocks! 🚀

Dividendology

Dec 20, 2024

One of the quickest ways to get investment ideas?

Find out out what insiders are buying.

Why?

Because the data is clear-

Stocks that have insider purchases tend to outperform the market.

Here are 4 dividend stocks that you can currently buy cheaper than the price insiders bought in at:

1. $OXY Occidental Petroleum Corp.

Warren Buffett’s Endorsement: Buffett’s Berkshire Hathaway has heavily invested in $OXY, with an estimated average purchase price of $54.50—higher than the current $46.80.
Dividend Stability and Cyclicality: The company’s current dividend yield is 1.82%, but dividends remain volatile due to the cyclical nature of the energy sector.
Improved Cash Flow Margins: Recent years have shown strong free cash flow margins, and capital expenditure stability provides a positive outlook for near-term profitability.

2. $DINO HF Sinclair Corp

Insider Confidence: Insiders have been purchasing shares at prices significantly higher than the current $34
High Shareholder Yield: DINO has a 5.9% starting dividend yield combined with a $1 billion share buyback program
Cyclicality and Valuation: While energy sector cyclicality introduces unpredictability, the company appears undervalued based on trailing 12-month metrics, though sustaining current free cash flow levels is uncertain.

3. $PSEC Prospect Capital Corp

High Yield with Risks: A starting dividend yield of 12.75% is enticing, but has historically come with significant share price decline.
Strategic Shift: The company is realigning its business to focus on safer senior secured middle-market loans, potentially increasing long-term dividend stability after a 25% cut.
Insider Buying: Heavy insider purchases reflect optimism about the strategic pivot and its potential impact on the company's financial health.

4. $LVMHF LVMH Moet Hennessy Louis Vuitton

Founder-Led Confidence: Bernard Arnault’s significant insider purchases and majority stake (over 50%) highlight strong confidence in the company’s long-term prospects.
Exceptional Margins: High gross profit margins (68.8% last year) and a portfolio of luxury brands underscore the company’s market strength and pricing power.
Dividend Growth: With a 2% starting yield and double-digit dividend growth over the past decade, the company offers a strong combination of growth and income, despite short-term economic headwinds.

Again, insider’s buying doesn’t mean you should go buy these stocks.

Always assess your risk tolerance, goals, and time horizon.

But it can be a great place to find ideas.

Out of the 4, I own and will continue to hold $LVMHF Louis Vuitton.

If you own or plan on buying any of these stocks, respond to this email and let me know!

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Check out these resources:

Tickerdata 🚀 (My automated spreadsheets and instant stock data for Google Sheets!)

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Seeking Alpha 🔥 (My favorite investment research platform!)

The Dividend Report 📊 (Free Newsletter for Straightforward Dividend Stock News)

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See you next week!

Dividendology 🚀