The staff at TheStreetrecently looked at some stocks poised for excellent dividend returns in 2017 -- Boeing (BA) - Get Report , Abbott Labs (ABT) - Get Report , Johnson & Johnson (JNJ) - Get Report , Cardinal Health (CAH) - Get Report and AbbVie (ABBV) - Get Report . But in addition to getting a dividend, an investor should try to buy the stock right, so let's examine the charts for each of these names and see if we can do better than at-the-market.
In the one-year daily chart of BA above, you can see that Boeing has had a good upside run from September. Prices have gotten extended on the upside, and the moving average convergence/divergence oscillator has crossed to a liquidate-longs sell signal. It would not surprise me to see BA retrace part of its rally. A test of the rising 50-day moving average line around $149 is possible or even a retest of support in the $145 area. This pullback will make the yield a little more attractive but also will dampen any buyer's remorse.
In the 12-month daily chart of ABT above, we can see a stock that has not participated much in the post-election rally. Prices are below the declining 50-day and 200-day moving averages. The on-balance volume line is not showing much accumulation or aggressive buying, and the MACD oscillator is below zero. Not a strong picture. ABT looks like it will test the May/June lows and maybe even the early 2016 lows in the next few weeks. If you like the company, buying the stock cheaper can boost the returns.
JNJ is a household name, at least where I grew up in central New Jersey. Despite being one of the Garden State's largest employers, one still needs to be objective about purchasing the stock. The chart above shows JNJ has been correcting lower since mid-July. Prices broke below both the 50-day and the 200-day moving average lines in late November and rebounded this month to the underside of the 200-day line. The OBV line has moved up and down with the price action and does not yet suggest that the selling pressure is over. The MACD oscillator has moved back above the zero line for a buy signal, but it looks like another sell signal is not far off. If I was looking to buy JNJ, I would wait for some attempt to retest the December low around $110.
In the daily chart of CAH above, we can see that prices have been in a decline for much of the past year. Prices are below the declining 200-day moving average line and holding above the declining 50-day average. The OBV line has declined all year, telling us that liquidation and aggressive selling has been the dominant action. Now that CAH has filled an October downside gap, I would look for some attempt to retest the November lows. This potential retest would be a better place to look to go long CAH.
Finally, in the daily chart of ABBV above, we can see that prices have been moving up in recent weeks. Prices are above the rising 50-day and 200-day moving averages despite a bearish death cross of those averages at the end of November. The OBV line has been rising the past two months, and the MACD oscillator is in a bullish mode. Unlike the other four companies above, traders and investors looking to buy ABBV for its yield should not try to buy weakness but rather strength.
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