|
Featured MNV Articles:
| RSI Alert: Newtek Business Services Now OversoldBy Dividend Channel Staff, Thursday, September 22, 12:23 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. Newtek Business Services Corp (NASDAQ:NEWT) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Newtek Business Services Corp an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of NEWT entered into oversold territory, changing hands as low as $18.22 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 Newtek Business Services Corp, the RSI reading has hit 28.4 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 37.8. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, NEWT's recent annualized dividend of 2.6/share (currently paid in quarterly installments) works out to an annual yield of 13.93% based upon the recent $18.66 share price. A bullish investor could look at NEWT's 28.4 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 NEWT 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.
Special Offer: Receive our best dividend ideas directly to your inbox each afternoon with the Dividend Channel Premium Newsletter
This Article's Word Cloud:
Among
Arial
Business
Channel
Corp
Dividend
DividendRank
Indeed
Index
NEWT
Newsletter
Newtek
Offer
Oversold
Premium
Receive
Relative
Services
Special
Start
Stocks
Strength
Thursday
below
bullish
coverage
currently
dividend
escape
fillColor
formula
history
ideas
interesting
investors
look
mdash
most
oversold
price
reading
recent
share
stock
stocks
territory
that
universe
which
yield
|