Bag This Cheap 10.7% Yield Dividend Stock Even Lower Than CEO Commaroto 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 September 11, Apollo Residential Mortgage, Inc.'s CEO and President, Michael A. Commaroto, invested $99,689.80 into 6,000 shares of AMTG, for a cost per share of $16.61. 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.

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In trading on Wednesday, bargain hunters could buy shares of Apollo Residential Mortgage, Inc. ( AMTG) and achieve a cost basis 1.1% cheaper than Commaroto, with shares changing hands as low as $16.44 per share. It should be noted that Commaroto has collected $0.44/share in dividends since the time of their purchase, so they are currently up 1.6% on their purchase from a total return basis. Apollo Residential Mortgage, Inc. shares are currently trading up about 0.2% on the day. The chart below shows the one year performance of AMTG shares, versus its 200 day moving average:

Apollo Residential Mortgage, Inc. Chart

Looking at the chart above, AMTG's low point in its 52 week range is $14.34 per share, with $17.50 as the 52 week high point — that compares with a last trade of $16.53. 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
09/11/2014 Michael A. Commaroto CEO and President 6,000 $16.61 $99,689.80

The current annualized dividend paid by Apollo Residential Mortgage, Inc. is $1.76/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 09/26/2014. Below is a long-term dividend history chart for AMTG, which can be of good help in judging whether the most recent dividend with approx. 10.7% annualized yield is likely to continue.

AMTG+Dividend+History+Chart

According to the ETF Finder at ETF Channel, AMTG makes up 1.87% of the SuperDividend U.S. ETF ( DIV) which is trading higher by about 0.3% on the day Wednesday.

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