Land This Bargain 7.0% Yield Dividend Stock Even Cheaper Than Director Eck Did

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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 1, Ryder System, Inc.’s Director, Robert J. Eck, invested $259,275.00 into 7,500 shares of R, for a cost per share of $34.57. 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 Wednesday, bargain hunters could buy shares of Ryder System, Inc. (Symbol: R) and achieve a cost basis 12.0% cheaper than Eck, with shares changing hands as low as $30.42 per share. Ryder System, Inc. shares are currently trading off about 5% on the day. The chart below shows the one year performance of R shares, versus its 200 day moving average:

Ryder System, Inc. Chart

Looking at the chart above, R’s low point in its 52 week range is $22.62 per share, with $61.40 as the 52 week high point — that compares with a last trade of $30.50. By comparison, below is a table showing the prices at which R insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
02/24/2020 Hansel E. Tookes II Director 3,000 $40.19 $120,561.00
02/24/2020 Robert E. Sanchez Chair and CEO 13,000 $39.64 $515,294.00
02/25/2020 Scott T. Parker EVP & CFO 12,500 $39.20 $489,987.50
02/25/2020 Robert D. Fatovic EVP, CLO & Corp. Secretary 2,500 $39.09 $97,715.00
02/28/2020 John J. Diez President, Global FMS 3,250 $36.90 $119,912.00
05/01/2020 Robert J. Eck Director 7,500 $34.57 $259,275.00

The current annualized dividend paid by Ryder System, Inc. is $2.24/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 05/15/2020. Below is a long-term dividend history chart for R, which can be of good help in judging whether the most recent dividend with approx. 7.0% annualized yield is likely to continue.

R+Dividend+History+Chart

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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