These Brazen Insiders are Buying Their Own 9.7% Yields Like Crazy

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The Contrary Investing Report > NYSE:ABR

Insider buying can be a great indicator for us income investors to buy alongside management. After all, when the big bosses reach into their own pockets to purchase their own payout streams, it’s a signal that they are confident in more than just the next dividend.

They believe their stock has upside, too. Often this results in total returns (including dividends) up to 214%. I’ll show you some examples, and also break down some current “buy” signals, in a moment.

First, let me make sure we are not mixing up insider buying with insider trading. They are two different things.… Read more

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Thanks to the December selloff, it’s relatively easy to find 9% yields. The stock market was a relentlessly receding tide in the fourth quarter, which is bad for “buy and hope” investors but quite helpful for income specialists like us.

Let’s look first at real estate investment trusts (REITs). Many now pay 9% – some good, some bad. The main index Vanguard Real Estate ETF (VNQ) has only paid this much (4.9%) twice before in the past ten years:

VNQ Is Rarely This Generous

By cherry picking the lot we can find 49 stocks paying 9% or more. But we should avoid names like Government Properties Income Trust (GOV), which frequently pops up on cute recession-proof dividend lists.… Read more

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Most “first-level investors” believe that investing is an either-or proposition. A stock or fund can deliver eye-popping yield … or it can deliver breakneck growth. But not both.

That’s simply not true. We’ll prove that today by highlighting three stocks yielding 6% to 9% with 20% price upside to boot.

Remember, total returns are made up of dividends and price appreciation. The latter, price gains, are driven by some combination of:

  1. Dividend raises (which inspire investors to pay more for the stock or fund), and/or
  2. A climb towards fair value (a closing of the discount window in a closed-end fund’s (CEF’s) case, or a higher multiple on FFO for a REIT).


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