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  • Snatch This Bargain Dividend Stock Even Cheaper Than EVP/CFO Holmes 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 August 4, Republic Services, Inc.’s Executive VP/CFO, Tod C Holmes, invested $ 83,032.80 into 3,000 shares of RSG, for a cost per share of $ 27.68. 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 Thursday, bargain hunters could buy shares of Republic Services, Inc. (NYSE: RSG) and achieve a cost basis 4.6% cheaper than Holmes, with shares changing hands as low as 26.47 per share. It should be noted that Holmes has collected $ 0.22/share in dividends since the time of their purchase, so they are currently down 3.7% on their purchase from a total return basis. Republic Services, Inc. shares are currently trading off about 1.7% on the day. The chart below shows the one year performance of RSG shares, versus its 200 day moving average:

    Republic Services, Inc. Chart

    The current annualized dividend paid by Republic Services, Inc. is $ 0.88/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 12/29/2011. Below is a long-term dividend history chart for RSG, which can be of good help in judging whether the most recent dividend with approx. 3.3% annualized yield is likely to continue.


    Looking at the chart above, RSG’s low point in its 52 week range is $ 24.72 per share, with $ 33.10 as the 52 week high point — that compares with a last trade of $ 26.52. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

    Purchased Insider Title Shares Price/Share Value
    08/04/2011 Tod C Holmes Executive VP/CFO 3,000 27.68 $ 83,032.80
    08/18/2011 Investment Llc Cascade 1,768,750 27.25 $ 48,198,968.12
    08/19/2011 Investment Llc Cascade 751,517 27.42 $ 20,602,913.71
    08/22/2011 Investment Llc Cascade 1,229,733 28.03 $ 34,474,580.87

    RSG makes up 9.17% of the Environmental Services ETF (AMEX: EVX)

    RSG operates in the Waste Management sector, among companies like Veolia Environnement (NYSE: VE) which is down about 0.8% today, and Stericycle Inc. (NASD: SRCL) trading lower by about 1.4%. Below is a three month price history chart comparing the stock performance of RSG, versus VE and SRCL.

    RSG,VE,SRCL Relative Performance Chart

    Special Offer: Find out what Dave Moenning is holding in the ETF Channel Flexible Growth Investment Portfolio with a special 20% off coupon from Forbes and 30 Days Free.

    Yahoo! Finance: Waste Management Industry News

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