Grab This Cheap 10.4% Yield Dividend Stock Even Lower Than Director Davis 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 December 2, Anworth Mortgage Asset Corp.'s Director, Robert Craig Davis, invested $108,778.38 into 20,000 shares of ANH, for a cost per share of $5.44. 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 Monday, bargain hunters could buy shares of Anworth Mortgage Asset Corp. ( ANH) and achieve a cost basis 1.5% cheaper than Davis, with shares changing hands as low as $5.36 per share. Anworth Mortgage Asset Corp. shares are currently trading down about 0.3% on the day. The chart below shows the one year performance of ANH shares, versus its 200 day moving average:

Anworth Mortgage Asset Corp. Chart

Looking at the chart above, ANH's low point in its 52 week range is $4.02 per share, with $5.53 as the 52 week high point — that compares with a last trade of $5.37. 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
12/02/2014 Robert Craig Davis Director 20,000 $5.44 $108,778.38

The current annualized dividend paid by Anworth Mortgage Asset Corp. is $0.56/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 ANH, which can be of good help in judging whether the most recent dividend with approx. 10.4% annualized yield is likely to continue.

ANH+Dividend+History+Chart

According to the ETF Finder at ETF Channel, ANH makes up 1.17% of the Mortgage REIT Income ETF ( MORT) which is trading lower by about 0.4% on the day Monday.

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