Stock Message Boards
Dividend Channel
Market News Video Dividend Detective The Warren Buffetts Next Door Stock message boards
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

Commit To Purchase Western Asset Mortgage Capital Corp At $12.50, Earn 11.1% Annualized
Friday, July 5, 12:02 PM ET, by Market News Video Staff

Investors considering a purchase of Western Asset Mortgage Capital Corp (WMC) stock, but cautious about ...

This Stock Has A 22.82% Yield And Sells For Less Than Book
Wednesday, July 10, 9:19 AM ET, by Market News Video Staff

Western Asset Mortgage Capital Corp (WMC) has been named as a Top 10 Real Estate ...

Strong Insider Buying Found in the Underlying Holdings of REM
Tuesday, July 16, 9:46 AM ET, by Market News Video Staff

A look at the weighted underlying holdings of the iShares Mortgage Real Estate Capped ETF ...

WMC: Insiders vs. Shorts
Tuesday, August 13, 2:24 PM ET, by Market News Video Staff

The most recent short interest data was recently released by the NASDAQ for the 07/31/2013 ...

ETF Channel Finds Strong Insider Buying in REM Holdings
Wednesday, August 28, 9:42 AM ET, by Market News Video Staff

A look at the weighted underlying holdings of the iShares Mortgage Real Estate Capped ETF ...

  More articles:  1 2 3 4 5 6 7 next »

Western Asset Mortgage Capital Named Top Dividend Stock With Insider Buying and 15.25% Yield (WMC)

By Dividend Channel Staff, Friday, September 21, 11:58 AM ET
Play Video: The Importance of Insider Buying


If the video does not load after a few moments, Upgrade to the Latest Flash Player.

In this series, we look through the most recent Dividend Channel ''DividendRank'' report, and then we cherry pick only those companies that have experienced insider buying within the past six months. The officers and directors of a company tend to have a unique insider's view of the business, and presumably the only reason an insider would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So when stocks turn up that see insider buying, and are also top ranked, investors are wise to take notice. One such company is Western Asset Mortgage Capital Corp (NYSE:WMC), which saw buying by Chief Operating Officer Travis Carr.

Back on May 15, Carr invested $37,400.00 into 2,000 shares of WMC, for a cost per share of $18.70. In trading on Friday, shares were changing hands as low as $23.58 per share, which is 26.1% above Carr's purchase price. It should be noted that Carr has collected $0.38/share in dividends since the time of their purchase, so they are currently up 28.1% on their purchase from a total return basis. Western Asset Mortgage Capital Corp shares are currently trading +8.16% on the day. The chart below shows the one year performance of WMC shares, versus its 200 day moving average:

Western Asset Mortgage Capital Corp Chart

Looking at the chart above, WMC's low point in its 52 week range is $17.57 per share, with $24.46 as the 52 week high point that compares with a last trade of $24.06. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
05/10/2012 Stephen P. Fulton Chief Investment Officer 78,000 $18.62 $1,452,438.00
05/10/2012 Travis Carr Chief Operating Officer 2,000 $18.65 $37,300.00
05/11/2012 Edward D. Fox Director 5,400 $18.76 $101,311.00
05/11/2012 Gavin L. James President and CEO 5,300 $18.68 $99,009.30
05/15/2012 Travis Carr Chief Operating Officer 2,000 $18.70 $37,400.00
09/17/2012 James W. Hirschmann III Chairman of the Board 1,000 $21.84 $21,840.00
09/18/2012 James W. Hirschmann III Chairman of the Board 15 $21.82 $327.30

The DividendRank report noted that among the coverage universe, WMC shares displayed both attractive valuation metrics and strong profitability metrics. For example, the recent WMC share price of $22.30 represents a price-to-book ratio of 1.1 and an annual dividend yield of 15.25% by comparison, the average company in Dividend Channel's coverage universe yields 3.7% and trades at a price-to-book ratio of 1.8. The report also cited the strong quarterly dividend history at Western Asset Mortgage Capital Corp, and favorable long-term multi-year growth rates in key fundamental data points.

The report stated, ''Dividend investors approaching investing from a value standpoint are generally most interested in researching the strongest most profitable companies, that also happen to be trading at an attractive valuation. That's what we aim to find using our proprietary DividendRank formula, which ranks the coverage universe based upon our various criteria for both profitability and valuation, to generate a list of the top most 'interesting' stocks, meant for investors as a source of ideas that merit further research.''

The annualized dividend paid by Western Asset Mortgage Capital Corp is $3.4/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 09/27/2012. Below is a long-term dividend history chart for WMC, which the report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.


This Article's Word Cloud:   Asset   Board   Capital   Carr   Chairman   Chief   Corp   Definition   Dividend   DividendRank   Importance   Insider   James   Mortgage   Officer   Operating   Travis   Value   Western   also   average   both   buying   chart   company   comparison   coverage   currently   dividend   escape   history   insider   investors   maybe   most   price   profitability   purchase   quarterly   recent   report   share   shares   that   their   they   trading   universe   valuation   which

Western Asset Mortgage Capital Named Top Dividend Stock With Insider Buying and 15.25% Yield (WMC) | www.DividendChannel.com | Copyright © 2010 - 2014, All Rights Reserved

Nothing in Dividend Channel is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy. Video widget and dividend videos powered by Market News Video. Quote data delayed at least 20 minutes; data powered by Ticker Technologies, and Mergent. Contact Dividend Channel; Meet Our Editorial Staff.