Getty Realty Enters Oversold Territory

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. Getty Realty Corp. (GTY) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.

But making Getty Realty Corp. an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of GTY entered into oversold territory, changing hands as low as $22.205 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.

START SLIDESHOW:
Click here to find out what 9 other oversold dividend stocks you need to know about »

In the case of Getty Realty Corp., the RSI reading has hit 29.2 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 47.4. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, GTY's recent annualized dividend of 1.00/share (currently paid in quarterly installments) works out to an annual yield of 4.39% based upon the recent $22.78 share price.

A bullish investor could look at GTY'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 GTY 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.

GTY+Dividend+History+Chart

According to the ETF Finder at ETF Channel, GTY makes up 1.11% of the PowerShares S&P SmallCap Low Volatility Portfolio ETF ( XSLV) which is trading lower by about 0.4% on the day Thursday.

More from Stocks

LIVE BLOG: Cohen Pleads Guilty, Manafort Found Guilty -- Any Market Impact?

LIVE BLOG: Cohen Pleads Guilty, Manafort Found Guilty -- Any Market Impact?

Rewalk Robotics CEO Reveals a Path to Profitability Amid Plunging Stock Price

Rewalk Robotics CEO Reveals a Path to Profitability Amid Plunging Stock Price

Stocks Trim Gains At Close After S&P 500 Sets Intraday High

Stocks Trim Gains At Close After S&P 500 Sets Intraday High

Rewind: Jim Cramer on the Bull Market, Kohl's, TJX, Apple and Toll Brothers

Rewind: Jim Cramer on the Bull Market, Kohl's, TJX, Apple and Toll Brothers

Tesla: One Stock Chart That Says It All

Tesla: One Stock Chart That Says It All