Insiders Love AT&T Inc. (T), Freeport-McMoRan Copper & Gold Inc. (FCX), and More High Yield Stocks

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The $150 billion market cap global cigarette company offers a 3.8% dividend yield- lower than many other cigarette companies, on the theory that there are still a good deal of growth opportunities in international markets. With growth being weak in many countries around the world, Philip Morris’s revenue and earnings decreased modestly last quarter compared to the second quarter of 2012. Renaissance Technologies, founded by billionaire Jim Simons, has been a significant shareholder in the company (research more stocks Renaissance owns).

An insider, as well as his children, recently bought shares of technology use-focused real estate investment trust Digital Realty Trust, Inc. (NYSE:DLR). Because REITs receive favorable tax treatment as long as they distribute a large share of taxable income to shareholders, they often pay high dividend yields. Digital Realty Trust’s annual yield is 5.7%, and unlike many REITs it has been consistently increasing its dividend for years even through the financial crisis. We’d note that the stock is down 21% year to date following a steep drop in July, but investors who are not already too exposed to REITs may want to consider it.

Another real estate investment trust which we’ve recorded an insider buying recently is Hersha Hospitality Trust (NYSE:HT). Hersha, an owner of hotel properties, did not perform well during the financial crisis and recession and so its dividend still has not recovered to its levels from the middle of 2008. The yield is still somewhat high, at 4.3%, but given the other opportunities available in REITs it might not be worth the risk. Ken Heebner’s Capital Growth Management initiated a position of 6.3 million shares in Hersha between January and March.

Disclosure: I own no shares of any stocks mentioned in this article.

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