OCI Partners Becomes Oversold

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. OCI Partners LP ( OCIP) 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 OCI Partners LP an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of OCIP entered into oversold territory, changing hands as low as $5.40 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 OCI Partners LP, the RSI reading has hit 28.6 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 47.0. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, OCIP's recent annualized dividend of 0.24/share (currently paid in quarterly installments) works out to an annual yield of 4.37% based upon the recent $5.50 share price.

A bullish investor could look at OCIP's 28.6 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 OCIP 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.

OCIP+Dividend+History+Chart

If you liked this article you might like

Ex-Dividends To Watch: 3 Stocks Going Ex-Dividend Monday: OCIP, AHH, PRA

Ex-Dividends To Watch: 3 Stocks Going Ex-Dividend Monday: OCIP, AHH, PRA

Insider Trading Alert - LMIA, SFST And OCIP Traded By Insiders

Insider Trading Alert - LMIA, SFST And OCIP Traded By Insiders

Ex-Dividends To Watch: 3 Stocks Going Ex-Dividend Tomorrow: OCIP, LZB, FMER

Ex-Dividends To Watch: 3 Stocks Going Ex-Dividend Tomorrow: OCIP, LZB, FMER

What To Sell: 3 Sell-Rated Dividend Stocks CIO, OCIP, STB

What To Sell: 3 Sell-Rated Dividend Stocks CIO, OCIP, STB

3 Sell-Rated Dividend Stocks: ZFC, DLNG, OCIP

3 Sell-Rated Dividend Stocks: ZFC, DLNG, OCIP