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|Yum! Brands Becomes Oversold
Monday, July 21, 2:03 PM ET, by Market News Video Staff
The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, ...
Monday Sector Laggards: Consumer Products, Services
Monday, July 21, 2:52 PM ET, by Market News Video Staff
The worst performing sector as of midday Monday is the Consumer Products sector, showing a ...
YUM Crosses Below Key Moving Average Level
Monday, July 21, 4:04 PM ET, by Market News Video Staff
In trading on Monday, shares of Yum! Brands, Inc. (YUM) crossed below their 200 day ...
YieldBoost Yum! Brands To 4.5% Using Options
Tuesday, July 22, 11:33 AM ET, by Market News Video Staff
Shareholders of Yum! Brands, Inc. (YUM) looking to boost their income beyond the stock's 2% ...
First Week of March 2015 Options Trading For Consumer Discretionary Select Sector SPDR Fund (XLY)
Tuesday, July 22, 12:02 PM ET, by Market News Video Staff
Investors in Consumer Discretionary Select Sector SPDR Fund (XLY) saw new options begin trading this ...
Top Quartile Ranked Dividend Stock YUM is Oversold
By Dividend Channel Staff, Wednesday, December 5, 11:42 AM ET
The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Yum! Brands, Inc. (NYSE:YUM) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Yum! Brands, Inc. an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of YUM entered into oversold territory, changing hands as low as $65.60 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of Yum! Brands, Inc., the RSI reading has hit 29.9 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 50.2. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, YUM's recent annualized dividend of 1.34/share (currently paid in quarterly installments) works out to an annual yield of 2.04% based upon the recent $65.89 share price.
A bullish investor could look at YUM's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on YUM is its dividend history.
In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
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According to the ETF Finder at ETF Channel, YUM makes up 2.11% of the Consumer Discretionary Select Sector SPDR Fund ETF (AMEX:XLY) which is trading lower by about 0.8% on the day Wednesday.
See what other ETFs contain YUM »
See what other stocks are held by XLY »
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