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. American Strategic Income Portfolio III (CSP) 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 American Strategic Income Portfolio III an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of CSP entered into oversold territory, changing hands as low as $6.7666 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 American Strategic Income Portfolio III, the RSI reading has hit 26.6 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 36.6. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, CSP's recent annualized dividend of 0.51/share (currently paid in monthly installments) works out to an annual yield of 7.37% based upon the recent $6.92 share price. A bullish investor could look at CSP's 26.6 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 CSP 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.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Stocks
2 Well-Known Stocks You Should Consider Shorting This Week
These bearish bets are showing both technical and quantitative deterioration.
Dow Ends Lower in Narrow Trading Friday; Markets Shrug Off Global Tensions
Stocks retreat Friday over disappointment over Broadcom's revenue warning and uncertainty over trade talks and interest rates.