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Investors are always seeking an edge, and insider purchases are one way to achieve it. Insider buying can highlight value plays and market bottoms that investors can bank on. If the stock in question is a reliable dividend payer, all the better. This article examines three dividend stocks, some of which are high-yielding, that insiders purchased in May and what investors might expect from their price action.
1. TXO Partners, L.P. Directors Buy Big in May
TXO Energy Partners LP Unit (NYSE:TXO) operates as a natural gas exploration and development company in Texas and the western U.S. The company’s directors made a significant investment in the company in May, with five directors purchasing stock amounting to $52 million. The buys are significant because this is the first activity by a director since late 2024, when they were also making purchases, and offsetting selling by executives. Executives, including the CEO and CFO, sold shares earlier in 2024, but this action raised no red flags. The company uses share-based compensation, making periodic sales by insiders likely. Currently, insiders and large investors own approximately 25% of this stock, and institutional interest is bullish.
The institutions don’t own much of this stock, but they are buying on balance in 2025. They own nearly 27% of the total, with recent activity including sales by Goldman Sachs and Raymond James Financial (NYSE:RJF). They collectively own approximately 1.85% of the stock. Regarding analysts, the single analyst tracked is bullish, specifically Stifel, which rates the stock as a Buy with a price target of $20, representing a 30% upside at the end of May.
Catalysts for this stock include company revenue, which reverted to growth in 2025, earnings, which are also growing, and the dividend. The company is paying an erratic but relatively high-yielding dividend in 2025. The latest payment annualizes to over 15% and may grow over time. The company is investing in additional properties and is expected to accelerate growth soon.
2. International Flavors and Fragrances Insiders Bought in May
International Flavors & Fragrances Inc (NYSE:IFF) is a commercial operator providing flavorings, scents, ingredients, and components for health, nutritional, and cosmetic products. Its insiders, including the CEO, several directors, and an EVP, also bought shares in May. Their activity is at a multi-year high, resulting in total exposure of approximately 0.25%. Institutional activity is also bullish for this market, providing a stronger tailwind. They own more than 96% of the stock and are buying on balance this year.
A dividend cut in 2024 and tepid responses from analysts since have helped to pressure IFF stock to a long-term low in 2025. However, the action in late May suggests the bottom is in play for this 2% yielding stock. Last year’s cut is a concern; there is a risk of another, but it is mitigated by the payout ratio, which is running below 40%. Regarding the analysts and the stock price outlook, IFF is trading at deep value levels, slightly below the lowest target tracked by InsiderTrades.
3. Alight, Inc. Director Raises Stake in Company
Alight Inc (NYSE:ALIT) operates an employee engagement platform that provides SaaS services, including benefit administration and financial planning. Its May insider buying consists of a single purchase by director David D Guilmette, who added 50,000 shares to his position. He and his colleagues now control more than 5% of the stock, making it a closely held name. The institutions own virtually all the remaining shares; May activity includes numerous double-digit position increases.
Analysts reduced price targets for this stock in early 2025, pressuring the market price lower, but it is another that has overcorrected. ALIT shares trade $2.50 below the weakest analysts’ target tracked by Insider Trades, about 30%, and there is an 80% upside forecasted at the consensus. The risk for investors is that this company is expected to contract in 2025 and accelerate the decline in CQ2. The silver lining is that the dividend appears reliable. The company pays less than 20% of the earnings forecast and yields nearly 3% with shares at $5.50.
