High-yield dividend stocks are attractive to investors because the regular payouts provide a good hedge against principle losses via share price declines. And broadly, any company that pays a decent dividend very likely has a strong balance sheet because you can’t support a robust payment to shareholders without the cash flow to back it up.
But another good indicator of stability is insider ownership. When company execs, big Wall Street investment banks and mutual fund managers are flocking to a specific investment, it’s a very good sign that buyers will stick with a stock instead of just swing trading it; high insider ownership is sometimes a sign of low volatility.
So what happens when you wed the two worlds of high-yield dividend stocks and companies that are largely held by insiders? You find some very stable companies with impressive income potential.
Here are five such dividend stocks to keep an eye on: