Grab This Bargain 4.2% Yield Dividend Stock Even Cheaper Than Director Sanford Did

Grab This Bargain 4.2% Yield Dividend Stock Even Cheaper Than Director Sanford Did

By Dividend Channel Staff, Monday, December 2, 1:32 PM ET

Start slideshow:

10 Dividend Bargains You Can Buy Cheaper Than Insiders 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 November 26, Interpublic Group of Companies Inc.'s Director, Linda S. Sanford, invested $74,894.01 into 3,363 shares of IPG, for a cost per share of $22.27. 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.

In trading on Monday, bargain hunters could buy shares of Interpublic Group of Companies Inc. (NYSE:IPG) and achieve a cost basis even cheaper than Sanford, with shares changing hands as low as $22.25 per share. It should be noted that Sanford has collected $0.23/share in dividends since the time of their purchase, so they are currently up 0.9% on their purchase from a total return basis. Interpublic Group of Companies Inc. shares are currently trading off about 0.5% on the day. The chart below shows the one year performance of IPG shares, versus its 200 day moving average:

Looking at the chart above, IPG's low point in its 52 week range is $19.56 per share, with $24.16 as the 52 week high point — that compares with a last trade of $22.27. By comparison, below is a table showing the prices at which IPG insider buying was recorded over the last six months:

The current annualized dividend paid by Interpublic Group of Companies Inc. is $0.94/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 11/29/2019. Below is a long-term dividend history chart for IPG, which can be of good help in judging whether the most recent dividend with approx. 4.2% annualized yield is likely to continue.

Special Offer: Join the income investing conversation on ValueForum.com with a special Seven Days for Seven Dollars invitation.

Linda S. Sanford