Pick Up This Bargain 8.6% Yielder Even Cheaper Than Senior Vice-President Majmudar Did

There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on December 11, General American Investors Inc's Senior Vice-President, Anang K. Majmudar, invested $20,826.00 into 400 shares of GAM, for a cost per share of $52.06. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. In trading on Monday, bargain hunters could buy shares of General American Investors Inc (Symbol: GAM) and achieve a cost basis even cheaper than Majmudar, with shares changing hands as low as $52.06 per share. General American Investors Inc shares are currently trading off about 0.5% on the day. The chart below shows the one year performance of GAM shares, versus its 200 day moving average:

Looking at the chart above, GAM's low point in its 52 week range is $41.88 per share, with $55.435 as the 52 week high point — that compares with a last trade of $52.21. By comparison, below is a table showing the prices at which GAM insider buying was recorded over the last six months:

The current annualized dividend paid by General American Investors Inc is $4.5/share, currently paid in annual installments, and its most recent dividend ex-date was on 11/18/2024. Below is a long-term dividend history chart for GAM, which can be of good help in judging whether the most recent dividend with approx. 8.6% annualized yield is likely to continue.

Click here to find out which 9 other dividend bargains you can buy cheaper than insiders »

Also see:

• OCLR Options Chain
• WHR YTD Return
• SXCP Price Target

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.