“Legendary investor Peter Lynch has a straightforward perspective on corporate insiders and their actions in the stock market. He put it simply: ‘Insiders might sell their shares for any number of reasons, but they buy them for only one reason—they think the price will rise.’
Indeed, one of the best stock signals comes from corporate insiders, the company officers who hold positions of high responsibility – to their Boards, and to their peers, and to their shareholders and customers – for bringing in the maximum returns. Their main focus is on keeping the company healthy, and their positions give them access to knowledge that the general public just hasn’t got. And that knowledge will inform their trading decisions when they trade their company’s stock.
With this in mind, we turned to TipRanks’ Insiders’ Hot Stocks tool to identify two stocks that are flashing signs of strong insider buying. What makes these stocks particularly appealing to investors is their generous dividend yields, exceeding 9%. So, without further ado, let’s dive in.
Energy Transfer (ET)
The first high-yield dividend stock we’ll look at is Energy Transfer, a major player in the North American oil and gas midstream sector. Everything about Energy Transfer is big: the company boasts a market cap near $39 billion, operates over 120,000 miles of pipelines and other energy transport infrastructure across the continental US, and last year alone, ET spent approximately $740 million on maintaining and improving that network. While Energy Transfer’s operations primarily revolve around Texas, Louisiana, Arkansas, and Oklahoma, it also holds a strong presence in the northern Great Plains, the Great Lakes and Mid Atlantic regions, as well as Florida.
Energy Transfer’s most recent ‘big news’ was the announcement of its agreement to acquire the smaller firm Lotus Midstream. The acquisition will bring another 3,000 miles’ worth of crude oil gathering and transport pipelines into ET’s network, connecting assets in the Texas-New Mexico border region with Oklahoma. The…
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