Top 10th Percentile Ranked Dividend Stock MAIN Enters Oversold Territory

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. Main Street Capital Corporation (NYSE: MAIN) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.

But making Main Street Capital Corporation an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of MAIN entered into oversold territory, changing hands as low as $21.75 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 Main Street Capital Corporation, the RSI reading has hit 29.1 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, MAIN's recent annualized dividend of 1.74/share (currently paid in monthly installments) works out to an annual yield of 7.47% based upon the recent $23.29 share price.

A bullish investor could look at MAIN's 29.1 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 MAIN 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.

MAIN Dividend History

Date
Div*

05/17/12
0.140

04/18/12
0.140

03/19/12
0.140

02/22/12
0.135

01/18/12
0.135

12/21/11
0.135

11/17/11
0.135

10/18/11
0.135

09/19/11
0.135

08/17/11
0.130

07/19/11
0.130

06/20/11
0.130

05/18/11
0.130

04/19/11
0.130

03/22/11
0.130

02/17/11
0.125

01/18/11
0.125

01/04/11
0.125

11/17/10
0.125

10/19/10
0.125

09/21/10
0.125

08/18/10
0.125

07/19/10
0.125

06/17/10
0.125

05/18/10
0.125

04/19/10
0.125

03/23/10
0.125

02/18/10
0.125

01/19/10
0.125

01/04/10
0.125

11/18/09
0.125

10/19/09
0.125

09/17/09
0.125

08/18/09
0.125

07/17/09
0.125

06/17/09
0.125

05/19/09
0.125

04/17/09
0.125

03/18/09
0.125

02/18/09
0.125

01/20/09
0.125

12/17/08
0.125

11/17/08
0.125

10/15/08
0.125

09/16/08
0.125

08/12/08
0.360

05/08/08
0.350

02/13/08
0.340

11/14/07
0.330

* 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, MAIN makes up 1.03% of the Global Listed Private Equity Portfolio ETF (AMEX: PSP)which is trading lower by about 0.2% on the day Friday.

See what other ETFs contain MAIN »
See what other stocks are held by PSP »

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