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. Fly Leasing Ltd (FLY - Get Report) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.But making Fly Leasing Ltd an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of FLY entered into oversold territory, changing hands as low as $9.82 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 Fly Leasing Ltd, the RSI reading has hit 29.2 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 54.7. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, FLY's recent annualized dividend of 1.00/share (currently paid in quarterly installments) works out to an annual yield of 9.94% based upon the recent $10.07 share price. A bullish investor could look at FLY's 29.2 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 FLY 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
Facebook, Federal Reserve, MoneyGram, E-Cigarettes - 5 Things You Must Know
U.S. stock futures rise as investors react to comments from European Central Bank President Mario Draghi that suggests further monetary easing just hours ahead of the start of the Federal Reserve's two-day policy meeting; details of Facebook's 'Libra' cryptocurrency are revealed by its backers in a published white paper.
Dow Futures Jump, European Stocks Gain as ECB Easing Signals Add to Fed Pressure
U.S. equity futures traded higher Tuesday, while European stocks reversed earlier declines, as investors reacted to comments from European Central Bank President Mario Draghi that suggested further monetary easing just hours ahead of the Federal Reserve's two-day policy meeting
Snap Gains on Analysts Upgrades as Messaging App Maker Wins Back Wall Street
Snap shares were indicated sharply higher Tuesday following a pair of analyst upgrades for the instant messaging app maker as it wins back faith from Wall Street amid improving revenues and longer user engagement.
Central Bankers Prove Again They're the Most Powerful Force in the Market
Mario Draghi indicated the European Central Bank is prepared to boost the European economy with more stimulus, and that's driving equity markets higher here on Tuesday.