In this series we review the most recent Dividend Channel “Dividend Ranking” report, then we select only companies that have experienced insider buying in the last six months. A company’s officers and directors tend to have a unique view of the company, and the only reason an insider would choose to take their hard-earned money and use it to purchase shares on the open market, is probably that they expect to make money – maybe they find the shares very undervalued, or maybe they see exciting progress within the company, or maybe be both. So when stocks that are subject to insider buying appear and are also top-ranked, investors better take note. One such company is Bank of America, which was purchased by director Thomas D. Woods.
High DividendRank‘ed Stocks with Insider Buying »
On November 1, Woods invested $656,250.00 in 25,000 shares of BAC, at a cost per share of $26.25. In trading Tuesday, the stock was changing hands at just $27.95 per share, or 6.5 percent above Woods’ purchase price. Shares of Bank of America Corp are currently trading down -0.88% for the day. The chart below shows the one-year performance of BAC stock, compared to its 200-day moving average:
BAC
Looking at the chart above, BAC’s low point in its 52-week range is $24.96 per share, with $38.60 as its 52-week high point – compare to a last trade of 28.09 $. For comparison, here is a table showing the prices at which insider purchases have been recorded over the last six months:
BAC
The DividendRank report noted that among the coverage universe, BAC stock had both attractive valuation metrics and strong profitability metrics. The report also cites Bank of America Corp’s strong quarterly dividend history and favorable long-term multi-year growth rates in key fundamental data points.
The report stated: “Dividend investors who view investing from a value perspective are typically most interested in finding the strongest, most profitable companies that also trade at an attractive valuation. This is what we aim to find by using our proprietary DividendRank formula, which ranks the coverage universe according to our different profitability and valuation criteria, to generate a list of the most “interesting” stocks, intended for investors as a source of ideas that merit further research.”
The annualized dividend paid by Bank of America is $0.96/share, currently paid in quarterly installments, and its most recent ex-dividend date was 11/30/2023. Below is a long-term historical dividend chart for BAC, which the report highlights as being of critical importance. Indeed, studying the past of a company dividend history can be of great help in judging whether the most recent dividend is likely to be sustained.
BAC