It can be a good idea for investors to keep an eye on which shares have experienced meaningful insider buying.
This is because insider buying is often regarded as a bullish signal, as few people know a company and its intrinsic value better than its own directors.
So, if they are buying shares on-market, it suggests that they are confident in the direction the company is heading and feel its shares are good value.
With that in mind, let's take a look at an ASX 200 dividend stock that insiders have been buying up big this month.
Which ASX 200 dividend stock are insiders buying?
The stock in question is coal miner New Hope Corporation Ltd (ASX: NHC).
According to a change of director's interests notice, the company's chair, Robert Millner AO, and non-executive director, Tom Millner, have topped up their collective holding.
The notice reveals that 100,000 shares were bought through an on-market trade on 22 March.
The Millners paid an average of $4.6924 per share, which equates to a total consideration of $469,240.
This boosted Tom Millner's holding to 21,153 direct shares and 5,853,215 indirect shares, and Robert Millner's holding to 279,559 direct shares and 5,943,215 million indirect shares.
What dividends would those 100,000 shares generate?
As one of the more generous dividend payers on the Australian share market, the shares that these insiders have bought are likely to provide them with some bumper dividends.
For example, according to a note out of Morgans from last week, its analysts are forecasting dividends per share of 35 cents in FY 2024 and 34 cents in FY 2025.
So, with the ASX 200 dividend stock currently trading at $4.36, this means 8% and 7.8% dividend yields, respectively.
It also means that those 100,000 shares would yield $35,000 and $34,000 in dividend payments over the next couple of years if Morgans is accurate with its estimates.
