|
Featured MNV Articles:
| Relative Strength Alert For Delta Air LinesBy Dividend Channel Staff, Thursday, August 17, 11:33 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. Delta Air Lines Inc (NYSE:DAL) 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 Delta Air Lines Inc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DAL entered into oversold territory, changing hands as low as $41.98 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 Delta Air Lines Inc, the RSI reading has hit 28.4 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 45.6. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DAL's recent annualized dividend of 0.4/share (currently paid in quarterly installments) works out to an annual yield of 0.94% based upon the recent $42.67 share price. A bullish investor could look at DAL'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 DAL 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
Channel
Delta
Dividend
DividendRank
Indeed
Index
Lines
NYSE
Newsletter
Offer
Oversold
Premium
Receive
Relative
Special
Start
Stocks
Strength
Thursday
above
average
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
|