Brian Bollinger put together a list of 10 dividend stocks that could withstand "October's typical volatility." Bollinger notes that each of these stocks pays extremely safe dividends, yields more than 2% and doesn't appear to be extremely overvalued -- but I think if he'd looked at their charts and technical indicators, he could have cut the list down even more.
 
Let's take a technical look at four of the stocks from Bollinger's list. These stocks have weak-looking chart, and I would look to avoid purchases right now no matter what the yield.
 
Cardinal Health
 
 
In this daily bar chart of  Cardinal Health ( CAH - Get Report) , above, I can see a security that has made lower and lower highs the past 12 months. Lower lows were made in February and June so far.
 
Cardinal Health is trading below the 50-day and 200-day averages, and their slopes are negative. The on-balance-volume, or OBV, line has been moving irregularly lower since December and indicates that sellers of Cardinal Health have been more aggressive than buyers for months and months. The moving average convergence/divergence, or MACD, oscillator is bearish, with its position below the zero line.
 
Cardinal Health may pay a sold dividend, but its chart lacks stability. It is not on my shopping list.

 
PPL
 
 
In this chart of PPL ( PPL - Get Report) , above, we can see a rapid C change in direction in late June. PPL gaped lower and has remained under pressure. In August, a bounce failed at the underside of the declining 50-day average. The 200-day average is starting to roll over. The OBV line is pointed down with a recent new low, and the MACD oscillator crossed with a new sell signal.
 
PPL has found support in the $32.50-to-$32 area -- look back at October through January. This current decline may not be so lucky.
 

 
Target
 
 
This daily chart of Target  ( TGT - Get Report) , above, is not saying "buy me." Target is below the declining 50-day and 200-day averages. The OBV line is pointed down, and the MACD oscillator is below the zero line.
 
Target could bounce, but the overall trend has been down, and further near-term probes of $66 look likely.
 

 
T. Rowe Price Group
 
 
T. Rowe Price Group  ( TROW - Get Report) , chart above, has been on the defensive since late April. The January/February lows are likely to be tested, with the moving averages pointed down and the OBV line weak. The MACD oscillator has spent a lot of time since June below the zero line telling us that the "trend strength" is weak. Volume has increased with the downtrend last month, and this reinforces the bear case.

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