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. Great Southern Bancorp, Inc. (GSBC - Get Report) 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 Great Southern Bancorp, Inc. an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of GSBC entered into oversold territory, changing hands as low as $42.82 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 Great Southern Bancorp, Inc., the RSI reading has hit 29.4 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 39.8. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, GSBC's recent annualized dividend of 0.88/share (currently paid in quarterly installments) works out to an annual yield of 2.03% based upon the recent $43.49 share price. A bullish investor could look at GSBC's 29.4 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 GSBC 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
Labor Day Sale: Join Jim Cramer's Club for Investors and Save
Get 57% off on your membership to Jim's Action Alerts PLUS club for investors.
Why Wall Street Likes Lowe's More This Week Than Home Depot
Analysts are advising clients that LOW's stock is still too low ahead of earnings unlike HD.
Lam Research's Market Outperformance Should Only Continue
The chip equipment maker has been outperforming the market and semiconductors broadly for the last three years, and there's no hint an end is in sight.