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. Gap 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.
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But what makes The Gap even more interesting and timely is the fact that Wednesday’s trading went into the oversold territory and traded at a low price of $ 18 per share. Use the Relative Strength Index (RSI) to define the oversold area. This is a technical analysis index used to measure momentum on a scale of 0 to 100. If the RSI reading falls below 30, the stock is considered oversold.
For The Gap, the RSI reading reached 27.0. By comparison, the average RSI of the dividend stock universe covered by the dividend channel is currently 51.8. A fall in stock prices (everything else is equal) creates better opportunities for dividend investors to get higher yields. In fact, GPS’s recent annual dividend of 0.48 / share (currently in installments) will yield an annual yield of 2.04% based on the recent $ 23.51 share price.
Bullish investors may start looking for buyers’ entry point opportunities by looking at today’s GPS 27.0 RSI readings as a sign that recent mass sales have run out of themselves. Dividend history is one of the basic data points that dividend investors need to investigate to determine if they are bullish on GPS. In general, dividends are not always predictable. However, the history chart below will help you determine if your most recent dividend is likely to continue.
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