Two High-Yield Dividend Stocks and One Uranium Stock Register Noteworthy Insider Buying

Ares Capital Corporation (NASDAQ:ARCC) also saw one of its top executives purchase a sizable block of shares recently. Co-President Mitchell S. Goldstein snapped up 19,200 shares on Thursday at prices that ranged from $12.95 to $13.00 per share and currently owns 182,740 shares. The specialty finance company that operates as a business development company (BDC), has suffered a 21% decline in its stock price over the past 52 weeks. The BDC primarily invests in first lien senior secured loans, second lien senior secured loans and mezzanine debt, which may also include equity components such as warrants. Ares Capital’s net asset value per share as of December 31 equaled $16.46. Therefore, the shares of the BDC are currently trading at a discount of 17% to their net asset value per share, which might serve as an explanation for the recent insider buying registered at the company.

Ares Capital Corporation generated total investment income of $1.03 billion during 2015, up from $989 million delivered in 2014. The increase was mainly attributable to an increase in the size of the BDC’s portfolio. There are a few more reasons investors might want to pour some cash into the company’s stock. For instance, the stock is priced at 8.27-times expected earnings, nearly half of the forward P/E multiple of 16.15 for the S&P 500 benchmark. Moreover, Ares Capital Corporation pays out an annualized dividend of $1.52 per share, which denotes a current dividend yield of 11.25%. Individual investors hunting for income stocks could find Ares Capital an extremely attractive investment opportunity, considering the recent insider buying, the discount-to-book value, cheap P/E multiples, and attractive dividend yield. Israel Englander’s Millennium Management reported owning 977,474 shares of Ares Capital Corporation (NASDAQ:ARCC) through its most up-to-date 13F.

Genesis Energy L.P. (NYSE:GEL) had one member of its Board of Directors buy shares this week. Director Jack T. Taylor purchased 10,000 class A shares on Monday at a cost of $24.77 per share, lifting his overall stake to 12,865 shares. The master limited partnership (MLP), which is focused on the midstream segment of the crude oil and natural gas industry in the Gulf Coast region, has seen its shares decline by 30% since the beginning of 2016 despite gaining nearly 7% on Monday. Indeed, the decline in crude oil prices has impacted the company’s revenue in recent quarters, but its segment margins (revenue minus production costs, operating expenses, and segment general and administrative expenses) have not suffered from this outcome. Most of Genesis Energy’s revenue and costs are derived from the purchase and sale of crude oil and petroleum products, so its margins are not under significant pressure.

Genesis Energy L.P. has two distinct types of operations: its onshore-based, refinery-centric crude oil and refined petroleum products transportation and related operations; and its offshore Gulf of Mexico crude oil and natural gas pipeline transportation and handling operations. This distinction is of crucial importance, as the shippers on the company’s offshore pipelines are represented by large independent energy companies that developed large-reservoir, long-lived crude oil properties that are economically viable even when crude oil prices trade near multi-year lows. This means that the MLP’s margins are not likely to suffer in the upcoming months and years. Genesis Energy’s total segment margin totaled $476.59 million for 2015, up from $347.26 million reported for 2014. The increase was mainly attributable to a higher segment margin from offshore pipeline transportation. The shares of Genesis Energy are trading at 12.93 expected fiscal year 2017 earnings, below the forward P/E ratio for the S&P 500 Index. More importantly, the MLP pays its shareholders an annual dividend of $2.62 per share, which represents a current dividend yield of 10.93%. Stuart J. Zimmer’s Zimmer Partners owns 190,000 shares of Genesis Energy L.P. (NYSE:GEL) as of December 31.

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