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.

START SLIDESHOW:
Click here to find out which 9 other dividend bargains you can buy cheaper than insiders »

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.

More from Stocks

Dow Logs Eighth Straight Drop as Stocks Slump

Dow Logs Eighth Straight Drop as Stocks Slump

Novo Nordisk Stock Rises 4% Over 2 Sessions

Novo Nordisk Stock Rises 4% Over 2 Sessions

Stock Market Just Took Another Beating -- Here's What You Need to Know

Stock Market Just Took Another Beating -- Here's What You Need to Know

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

Daimler's Profit Warning Should Terrify Traders Before Earnings Season Begins

Daimler's Profit Warning Should Terrify Traders Before Earnings Season Begins