Dividend Channel’s Dividend Rank formula ranks the coverage universe of thousands of dividend stocks according to a unique formula designed to identify stocks that combine two key characteristics: strong fundamentals and cheap-looking valuations. To do.Johnson & Johnson
It currently has an excellent rank in the top 25% of the coverage universe, suggesting that it is one of the most “interesting” ideas that deserves further research by investors.
10 Oversold Dividend Stocks »
But what makes Johnson & Johnson even more interesting and timely is that Monday’s trading put JNJ’s stock in the oversold territory, trading at a low price of $ 165.67 per share. It’s a fact. Use the Relative Strength Index (RSI) to define the oversold area. This is a technical analytic metric used to measure momentum on a scale of 0 to 100. If the RSI reading falls below 30, the stock is considered oversold.
For Johnson & Johnson, the RSI reading reached 28.8. By comparison, the average RSI of the dividend stock universe covered by the dividend channel is currently 50.2. A fall in stock prices (everything else is equal) creates better opportunities for dividend investors to earn higher yields. In fact, JNJ’s recent annual dividend of 4.24 / share (currently in quarterly installments) is 2.54% annually based on its recent $ 166.97 share price.
Bullish investors may see JNJ’s 28.8 RSI reading today as a sign that recent mass sales have run out of themselves and begin looking for entry point opportunities for buyers. Among the basic data points that dividend investors need to investigate to determine if they are bullish on JNJ is the history of dividends. In general, dividends are not always predictable. However, the history chart below can help you determine if your most recent dividend is likely to continue.
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