Kayne Anderson Energy Development Named Top Dividend Stock With Insider Buying and 7.34% Yield (KED)
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.
The DividendRank report noted that among the coverage universe, KED shares displayed both attractive valuation metrics and strong profitability metrics. For example, the recent KED share price of $27.23 represents a price-to-book ratio of 1.1 and an annual dividend yield of 7.34% — by comparison, the average company in Dividend Channel's coverage universe yields 4.1% and trades at a price-to-book ratio of 2.1. The report also cited the strong quarterly dividend history at Kayne Anderson Energy Development Company, 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 Kayne Anderson Energy Development Company is $2/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/23/2014. Below is a long-term dividend history chart for KED, 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.