Getty Realty Named Top Dividend Stock With Insider Buying and 5.15% Yield (GTY)

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 Getty Realty Corp. (GTY), which saw buying by Director Milton Cooper.

START SLIDESHOW:
The Top DividendRank'ed Stocks With Insider Buying »

Back on March 16, Cooper invested $533,969.96 into 30,000 shares of GTY, for a cost per share of $17.80. In trading on Tuesday, bargain hunters could buy shares of Getty Realty Corp. ( GTY) and achieve a cost basis 5.7% cheaper than Cooper, with shares changing hands as low as $16.79 per share. It should be noted that Cooper has collected $0.22/share in dividends since the time of their purchase, so they are currently down 4.4% on their purchase from a total return basis. Getty Realty Corp. shares are currently trading +0.06% on the day. The chart below shows the one year performance of GTY shares, versus its 200 day moving average:

Getty Realty Corp. Chart

Looking at the chart above, GTY's low point in its 52 week range is $16.70 per share, with $19.53 as the 52 week high point — that compares with a last trade of $16.90. 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
03/16/2015 Milton Cooper Director 30,000 $17.80 $533,969.96

The DividendRank report noted that among the coverage universe, GTY shares displayed both attractive valuation metrics and strong profitability metrics. For example, the recent GTY share price of $17.11 represents a price-to-book ratio of 1.4 and an annual dividend yield of 5.15% — by comparison, the average company in Dividend Channel's coverage universe yields 4.0% and trades at a price-to-book ratio of 2.2. The report also cited the strong quarterly dividend history at Getty Realty 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 Getty Realty Corp. is $0.88/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 06/23/2015. Below is a long-term dividend history chart for GTY, 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.

GTY+Dividend+History+Chart

More from Stocks

Quick Read: 3 Things for Investors to Know Before Wednesday's Trading Session

Quick Read: 3 Things for Investors to Know Before Wednesday's Trading Session

Replay: Jim Cramer on the Markets, Oil, General Electric, Zillow and Micron

Replay: Jim Cramer on the Markets, Oil, General Electric, Zillow and Micron

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Micron Shares Soar; Chipmaker Is 'Managing for Profitability' Now, Says Analyst

Micron Shares Soar; Chipmaker Is 'Managing for Profitability' Now, Says Analyst

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline