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 Friday, shares of CSP entered into oversold territory, changing hands as low as $6.54 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 American Strategic Income Portfolio III, the RSI reading has hit 29.99 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 54.9. 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 7.74% based upon the recent $6.59 share price. A bullish investor could look at CSP's 29.99 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
The GDP Report Took the Wind Out of the Bears' Sails
It is easy to argue that this market should be rolling over but it is not and that means we stick with what is working which are long plays.
General Electric Teeters on the Edge as Earnings Loom
After rebounding 27% in 2019, GE's price action is showing some cracks as earnings are on the horizon.
Stocks Waver as Weak Reports From Intel, Exxon Mobil Overshadow Strong GDP
Stocks fluctuate as disappointing results from Intel and Exxon Mobil overshadow strong U.S. growth in the first quarter.
Ambarella Shines at Center of Governments' Nonstop Efforts to Monitor Citizens
Ambarella rose to fame as the maker of chips inside GoPro cameras, but it's since transformed itself into a full-fledged computer vision company