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. Northeast Community Bancorp Inc (NECB) 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 Northeast Community Bancorp Inc an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of NECB entered into oversold territory, changing hands as low as $6.6841 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 Northeast Community Bancorp Inc, the RSI reading has hit 29.6 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 45.4. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, NECB's recent annualized dividend of 0.12/share (currently paid in quarterly installments) works out to an annual yield of 1.73% based upon the recent $6.95 share price. A bullish investor could look at NECB's 29.6 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 NECB 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
Dow Futures Flat, Global Stocks Mixed; Brexit Talks, US Earnings Drive Sentiment
Global stocks traded mixed Wednesday, with modest gains in Asia offset by weaker U.S. equity futures, as investors eyed the final hours of Brexit negotiations between Britain and the EU while awaiting around round of third quarter earnings reports on Wall Street.
IBM Third-Quarter Revenue and Earnings Expected to Fall
Analysts polled by FactSet are expecting earnings of $2.66 per share on revenue of $18.2 billion.
Crown Castle International Expected to Earn 49 Cents a Share
Crown Castle International revenue expected to rise 7.5% to $1.5 billion.