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 — strong fundamentals and a valuation that looks inexpensive. Fort Dearborn Income Securities IN (FDI) 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 Fort Dearborn Income Securities IN an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of FDI entered into oversold territory, changing hands as low as $15.54 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. In the case of Fort Dearborn Income Securities IN, the RSI reading has hit 28.2 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 52.6. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, FDI's recent annualized dividend of 0.70/share (currently paid in quarterly installments) works out to an annual yield of 4.47% based upon the recent $15.66 share price. A bullish investor could look at FDI's 28.2 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 FDI 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.
More from Stocks
Apple Arcade Could Be a Big Hit, But Its Value Won't Be Realized Overnight
A low price point plus one-month free trial could make Apple Arcade an appealing option for millions of gamers worldwide, but old habits could still prove hard to break.
Sonos Resonates With Investors on Raymond James Upgrade to Strong Buy
Digital-home-audio-device maker is well-positioned relative to peers, the firm says.
Domino's Keeps Delivery In-House, Reportedly Avoids Use of Third-Party Apps
Domino's CEO says the profit lost to commissions and risk to customer goodwill make the delivery apps not worthwhile.
Range Resources Shares Energized After Upgrade to Buy at MKM
MKM analyst John Gerdes sees upside potential in the oil-and-gas producer.