Markets

Snatch This Bargain 10.7% Yield Dividend Stock Even Cheaper Than CEO & President Siering 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 February 10, Two Harbors Investment Corp's CEO & President, Thomas Siering, invested $35,760.00 into 4,000 shares of TWO, for a cost per share of $8.94. 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 Wednesday, bargain hunters could buy shares of Two Harbors Investment Corp (Symbol: TWO) and achieve a cost basis even cheaper than Siering, with shares changing hands as low as $8.86 per share. Two Harbors Investment Corp shares are currently trading off about 0.6% on the day. The chart below shows the one year performance of TWO shares, versus its 200 day moving average:

Two Harbors Investment Corp Chart

Looking at the chart above, TWO's low point in its 52 week range is $7.28 per share, with $9.175 as the 52 week high point - that compares with a last trade of $8.89. By comparison, below is a table showing the prices at which TWO insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
11/08/2016 Thomas Siering CEO & President 3,500 $8.48 $29,676.15
02/10/2017 Thomas Siering CEO & President 4,000 $8.94 $35,760.00

The current annualized dividend paid by Two Harbors Investment Corp is $0.96/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 12/28/2016. Below is a long-term dividend history chart for TWO, which can be of good help in judging whether the most recent dividend with approx. 10.7% annualized yield is likely to continue.

TWO+Dividend+History+Chart

According to the ETF Finder at ETF Channel, TWO makes up 5.20% of the Mortgage REIT Income ETF (Symbol: MORT) which is trading lower by about 0.6% on the day Wednesday.

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

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


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

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