Top-Ranked Andersons Getting Very Oversold

By DividendChannel.com

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 â¿¿ strong fundamentals and a valuation that looks inexpensive. Andersons, Inc. (NASD: ANDE) 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 Andersons, Inc. an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of ANDE entered into oversold territory, changing hands as low as $45.25 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.

Click here to find out what 9 other oversold dividend stocks you need to know about, at DividendChannel.com »

In the case of Andersons, Inc., the RSI reading has hit 30.0 â¿¿ by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 37.8. A falling stock price â¿¿ all else being equal â¿¿ creates a better opportunity for dividend investors to capture a higher yield. Indeed, ANDE's recent annualized dividend of 0.60/share (currently paid in quarterly installments) works out to an annual yield of 1.32% based upon the recent $45.57 share price.

A bullish investor could look at ANDE's 30.0 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 ANDE 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.

ANDE Dividend History

Date
Div*

03/29/12
0.150

12/29/11
0.150

09/29/11
0.110

06/29/11
0.110

03/30/11
0.110

12/30/10
0.110

09/29/10
0.090

06/29/10
0.090

03/30/10
0.090

12/30/09
0.088

09/29/09
0.088

06/29/09
0.088

03/30/09
0.088

12/30/08
0.085

09/29/08
0.085

06/27/08
0.085

03/28/08
0.078

12/28/07
0.078

09/27/07
0.078

06/28/07
0.048

03/29/07
0.048

12/28/06
0.048

09/28/06
0.045

06/29/06
0.045

03/30/06
0.045

12/29/05
0.043

09/29/05
0.043

06/29/05
0.043

03/30/05
0.040

12/30/04
0.040

09/29/04
0.040

06/29/04
0.037

03/30/04
0.037

12/30/03
0.037

09/29/03
0.035

06/27/03
0.035

03/28/03
0.035

12/30/02
0.035

09/27/02
0.033

06/27/02
0.033

03/27/02
0.033

12/28/01
0.033

09/27/01
0.033

06/28/01
0.033

03/29/01
0.033

12/28/00
0.033

09/28/00
0.030

06/29/00
0.030

03/30/00
0.030

12/30/99
0.030

09/29/99
0.025

06/29/99
0.025

03/30/99
0.025

12/30/98
0.025

09/29/98
0.020

06/29/98
0.015

03/30/98
0.015

12/30/97
0.015

09/29/97
0.015

06/27/97
0.015

03/27/97
0.015

12/30/96
0.015

* Data may be adjusted for splits; we are not responsible for data errors; always verify data with the company.

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According to the ETF Finder at ETF Channel, ANDE makes up 4.49% of the S&P SmallCap Consumer Staples Portfolio ETF (NASD: PSCC)which is trading higher by about 0.5% on the day Friday.

See what other ETFs contain ANDE »
See what other stocks are held by PSCC »

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