Land This Bargain 16.6% Yielder Even Cheaper Than President, CEO James 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 May 12, Western Asset Mortgage Capital Corp's President, CEO, Gavin L. James, invested $22,245.00 into 1,500 shares of WMC, for a cost per share of $14.83. 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 Thursday, bargain hunters could buy shares of Western Asset Mortgage Capital Corp ( WMC) and achieve a cost basis even cheaper than James, with shares changing hands as low as $14.71 per share. Western Asset Mortgage Capital Corp shares are currently trading up about 0.1% 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 $13.25 per share, with $15.81 as the 52 week high point — that compares with a last trade of $14.74. By comparison, below is a table showing the prices at which WMC insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
05/12/2015 Gavin L. James President, CEO 1,500 $14.83 $22,245.00

The current annualized dividend paid by Western Asset Mortgage Capital Corp is $2.56/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 06/25/2015. Below is a long-term dividend history chart for WMC, which can be of good help in judging whether the most recent dividend with approx. 16.6% annualized yield is likely to continue.

WMC+Dividend+History+Chart

According to the ETF Finder at ETF Channel, WMC makes up 2.37% of the SuperDividend U.S. ETF ( DIV) which is trading relatively unchanged on the day Thursday.

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