Featured MNV Articles:
|Notable ETF Inflow Detected - IDU, DUK, D, AEP
Thursday, February 27, 10:59 AM ET, by Market News Video Staff
Symbols mentioned in this story: IDU, DUK, D, AEP Exchange traded funds (ETFs) trade just ...
American Electric Power Stock Getting Very Oversold
Thursday, February 27, 3:58 PM ET, by Market News Video Staff
In trading on Thursday, shares of American Electric Power Co Inc (AEP) entered into oversold ...
The Implied Analyst 12-Month Target For SPMO
Friday, February 28, 8:22 AM ET, by Market News Video Staff
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...
Bullish Two Hundred Day Moving Average Cross - AEP
Monday, March 2, 3:57 PM ET, by Market News Video Staff
In trading on Monday, shares of American Electric Power Co Inc (AEP) crossed above their ...
American Electric Power (AEP) Shares Cross 3% Yield Mark
Monday, March 9, 3:08 PM ET, by Market News Video Staff
In trading on Monday, shares of American Electric Power Co Inc (AEP) were yielding above ...
American Electric Power is Oversold
By Dividend Channel Staff, Friday, March 20, 4:33 PM 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. American Electric Power Co Inc (NYSE:AEP) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making American Electric Power Co Inc an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of AEP entered into oversold territory, changing hands as low as $70.26 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 American Electric Power Co Inc, the RSI reading has hit 29.1 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 29.3. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, AEP's recent annualized dividend of 2.8/share (currently paid in quarterly installments) works out to an annual yield of 3.46% based upon the recent $80.81 share price.
A bullish investor could look at AEP's 29.1 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 AEP 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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