Investors looking for companies with higher than average yields and a relative margin of safety certainly have their work cut out for them.
Given we are now in a rising interest rate environment, those looking for income now have viable long term options in the fixed income space, pushing many income investors out of equities and into safer instruments such as bonds.
Companies like Capital Power Corp. (TSX:CPX) is one firm which generally fits the profile of a high-yielding stock with staying power (excuse the pun), providing many long term investors with a yield which has continued to grow and exceeds a double digit return every year.
For insiders such as President and CEO Brian Vaasjo, nothing could be further from the truth. This insider has added to his existing position, investing more than a quarter million dollars in the company at a price not much lower than current close (as of time of writing).
When insiders such as the company’s chief are buying stock in a heavy fashion, a strong signal is sent to the market that good things may be to come for Captial Power Corp.
As always, a reminder that insider selling is in no way an indication of the direction a stock is expected to move in the near-term, and long-term investors should assess the fundamentals of said company and consult an investment advisor before making any purchases.
Invest wisely, my friends.
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