Southside Bancshares Named Top Dividend Stock With Insider Buying and 5.10% Yield (SBSI)By Dividend Channel Staff, Thursday, March 14, 11:21 AM ETIn 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 Southside Bancshares, Inc. (NASDAQ:SBSI), which saw buying by Director Herbert C. Buie. Back on January 30, Buie invested $64,714.80 into 1,990 shares of SBSI, for a cost per share of $32.52. In trading on Thursday, bargain hunters could buy shares of Southside Bancshares, Inc. (NASDAQ:SBSI) and achieve a cost basis 15.2% cheaper than Buie, with shares changing hands as low as $27.59 per share. It should be noted that Buie has collected $0.36/share in dividends since the time of their purchase, so they are currently down 14.1% on their purchase from a total return basis. Southside Bancshares, Inc. shares are currently trading -1.91% on the day. The chart below shows the one year performance of SBSI shares, versus its 200 day moving average:
Looking at the chart above, SBSI's low point in its 52 week range is $25.38 per share, with $35.95 as the 52 week high point — that compares with a last trade of $27.66. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:
The DividendRank report noted that among the coverage universe, SBSI shares displayed both attractive valuation metrics and strong profitability metrics. For example, the recent SBSI share price of $28.25 represents a price-to-book ratio of 1.1 and an annual dividend yield of 5.10% — by comparison, the average company in Dividend Channel's coverage universe yields 4.6% and trades at a price-to-book ratio of 2.3. The report also cited the strong quarterly dividend history at Southside Bancshares, Inc., 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 Southside Bancshares, Inc. is $1.44/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 02/14/2024. Below is a long-term dividend history chart for SBSI, 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.
This Article's Word Cloud:
Bancshares
Buie
Channel
Director
Dividend
DividendRank
Herbert
Insider
SBSI
Southside
also
attractive
average
basis
below
book
both
buying
chart
companies
company
comparison
cost
coverage
currently
dividend
escape
fillColor
find
from
have
history
insider
investors
maybe
mdash
most
price
recent
report
share
shares
that
their
they
trading
universe
valuation
which
with
|