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3 Undervalued Dividend Opportunities That Insiders Bought Heavily

Published Sat, 12 Sep 2020 14:58:19 -0400 on Seeking Alpha

Seeking AlphaQuick Picks & Lists3 Undervalued Dividend Opportunities That Insiders Bought HeavilySep. 12, 2020 2:58 PM ET|| Includes: NSP, T, T.PA, T.PC, XRXby: Robbe DelaetRobbe Delaet Insider OpportunitiesThe #1 service to pick winning insider stocks, based on a proven formulaSummaryInvestor appetite for dividend/value stocks decreased in 2020 as all the money flowed to tech stocks lately. The recent underperformance is unjustified and should reverse when the economy improves.
However, it is important to pick out the right dividend stocks as this crisis is still a threat for many companies. Following stocks that insiders purchased can help with that.
In this article, I provide three undervalued dividend stocks that insiders bought recently.
One is a buy for the high yield, the other for the yield and turn-arround potential, and the last one for the yield and strong growth.
2020 has been an unprecedented year with enormous amounts of volatility and significant divergences in returns between stocks. Huge amounts of FED stimuli and the economic shift to technology due to COVID-19 significantly improved sentiment around tech stocks like Apple (AAPL), Amazon (AMZN), Shopify (SHOP), Nvidia (NVDA), among others.
Meanwhile, dividend and value stocks have disappeared in the background. This is for example visible in the strong underperformance of the Dividend Aristocrats (NOBL) (-4.1%) compared to the tech-heavy S&P 500 (SPY) (+3.7%) as you can see in the chart below.
With bond yields at record lows and tech stocks being priced to perfection, we anticipate a significant inflow of money into value and dividend stocks over the coming years. You can read more about this topic in my recent article.
Additionally, uncertainty about the stock market has never been this high as stocks are priced very expensively and the economy will take years to recover. Therefore, fixed income streams like dividends might become as important as ever to accumulate your wealth... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
AT&T 38.38   16.1 2.38 2.04 5.43
XEROX 30.47   13.7 2.23 1.00 3.19
INSPERITY 102.16   25.6 3.99 1.20 1.19

AT&T - T
AT&T - T  

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