Legendary investor Peter Lynch has a straightforward perspective on corporate insiders and their actions in the stock market. He put it simply: insiders may sell shares for a range of reasons, but they only buy shares when they believe the price is going to rise.
Keeping a close watch on insiders’ stock purchases can prove to be a profitable investment strategy. Corporate insiders, which include company officers and board members, possess valuable knowledge about company policies and performance that can influence stock prices. They can utilize this information to make informed decisions when purchasing stocks, but they are required by law to publicly disclose their own stock holdings. This transparency allows the general public to gain insights from these purchases.
Bearing this in mind, we used the Insiders’ Hot Stocks tool from TipRanks to point us in the direction of two stocks flashing signs of strong insider buying that warrant a closer look. From an investor’s perspective, each of these stocks has an important feature in common: high dividends, which make them desirable as sources of income. We’re talking about at least 8% dividend yield here. Let’s dive in, and check out the details.
Plains GP Holdings (PAGP)
We’ll start in the oil industry, where Plains GP Holdings owns a controlling general interest, as well as an indirect limited partner interest, in Plains All American (PAA). PAA is a major midstream firm that transports crude oil and natural gas within the US hydrocarbon transport network. Through its ownership stakes in the company, Plains GP offers investors an alternative means of accessing the revenue stream generated by this network.
The underlying asset network behind Plains GP extends across North America, from the Northern Great Plains of the Dakotas, Montana, and Saskatchewan to the Rockies of Alberta down through Wyoming and Colorado, and into the plains and Gulf Coast of Kansas, Oklahoma, Texas, and Louisiana. The network has extensions into New Mexico and into the Mississippi River Valley, and additional facilities are…
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