Written by Rich B. Meier
TopEquityNews.com
We are going to trade just like a congressman/woman, on insider information – legally. Unfortunately, unlike our friends in D.C., we aren’t going to get an allocation of any hot IPOs just because Visa, Inc. (V) likes us or buy Amyris, Inc. (AMRS) right before they receive a huge cash infusion from the US Department of Energy.
Things that make you go huh
We actually have to do a little old-fashion digging and research to uncover our insider ideas. Top Equity News examines the insider trading logs and then cross-references purchases with announced stock buybacks. It’s is our view that when the two overlap, management – on a personal and professional level – is making a loud statement, “We like our company’s stock, a lot.”
It’s not always obvious what’s motivating insiders to open their wallets and corporate checking accounts. However, for this week’s pick, Two Harbors Investment Corp. (TWO), its 17% dividend yield is enough for TEN. No, that’s not a misprint – 17%!
The dividend looks fairly reliable too. Going back to 2009, Two harbors has paid at least 26 cents a quarter and 4 straight quarters of 40 cents. Here is TWO’s dividend history according to the company’s website.
| Declaration Date | Record Date | Payable Date | Amount per Share |
| 14-Sep-11 | 26-Sep-11 | 20-Oct-11 | $0.40 |
| 14-Jun-11 | 24-Jun-11 | 20-Jul-11 | $0.40 |
| 2-Mar-11 | 14-Mar-11 | 14-Apr-11 | $0.40 |
| 8-Dec-10 | 17-Dec-10 | 20-Jan-11 | $0.40 |
| 13-Sep-10 | 30-Sep-10 | 21-Oct-10 | $0.39 |
| 14-Jun-10 | 30-Jun-10 | 22-Jul-10 | $0.33 |
| 12-Mar-10 | 31-Mar-10 | 23-Apr-10 | $0.36 |
| 21-Dec-09 | 31-Dec-09 | 26-Jan-10 | $0.26 |
Two Harbors operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS) and related investments. Three insiders purchased 25,000 shares since November 7, 2011, for a total of $228,984. On the fifth of November, management authorized a 10 million share repurchase program.
Despite TWO grading out as a C in our ranking system, Top Equity News (and likely most investors) would be content with its yield and just a little capital appreciation. In the past year, shares have traded between $7.72 and $11.51 (yesterday’s close: $9.28). That may seem like a wide spread; however, with a beta of only 0.22, it hasn’t been a turbulent ride while collecting a fat 17%.
Insider Trading Like a California Congresswoman is an article from: 
