The DividendRank formulation at Dividend Channel ranks a coverage universe of hundreds of dividend stocks, according to a proprietary system developed to discover those shares that merge two critical qualities — strong fundamentals and a valuation that appears to be reasonably priced. Progress Auto Sections Inc (Symbol: AAP) presently has an outstanding rank, in the leading 25% of the coverage universe, which suggests it is among the major most “fascinating” ideas that advantage more analysis by investors.
But building Advance Automobile Components Inc an even much more appealing and timely inventory to look at, is the point that in trading on Monday, shares of AAP entered into oversold territory, changing arms as low as $171.33 per share. We define oversold territory employing the Relative Strength Index, or RSI, which is a technological analysis indicator made use of to evaluate momentum on a scale of zero to 100. A stock is regarded to be oversold if the RSI looking at falls below 30.
In the circumstance of Progress Auto Parts Inc, the RSI studying has hit 26.8 — by comparison, the universe of dividend stocks included by Dividend Channel at present has an typical RSI of 37.4. A falling stock selling price — all else getting equal — generates a greater option for dividend investors to capture a greater yield. In fact, AAP’s recent annualized dividend of 6/share (at this time compensated in quarterly installments) operates out to an once-a-year produce of 3.34% primarily based upon the recent $179.43 share selling price.
A bullish investor could search at AAP’s 26.8 RSI looking through now as a signal that the current weighty selling is in the course of action of exhausting by itself, and begin to glimpse for entry position alternatives on the purchase facet. Among the the fundamental datapoints dividend traders should really look into to come to a decision if they are bullish on AAP is its dividend background.
In standard, dividends are not constantly predictable but, hunting at the background chart below can enable in judging irrespective of whether the most latest dividend is most likely to proceed.
The sights and thoughts expressed herein are the sights and opinions of the creator and do not automatically reflect all those of Nasdaq, Inc.