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. Schnitzer Steel Industries Inc (SCHN - 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 Schnitzer Steel Industries Inc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of SCHN entered into oversold territory, changing hands as low as $20.60 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 Schnitzer Steel Industries Inc, the RSI reading has hit 28.9 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 45.3. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, SCHN's recent annualized dividend of 0.75/share (currently paid in quarterly installments) works out to an annual yield of 3.52% based upon the recent $21.35 share price. A bullish investor could look at SCHN's 28.9 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 SCHN 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. According to the ETF Finder at ETF Channel, SCHN makes up 1.66% of the SPDR S&P Metals and Mining ETF ( XME which is trading lower by about 1.7% on the day Thursday.
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
Global Stocks Drift Lower Ahead of U.S. GDP Data; Dollar Tests Two-Year High
Global stocks drifted lower Thursday as investors focused on a key reading of U.S. economic growth later in the session and the spillover from a mixed set of earnings last night on Wall Street.
Amazon Plans to Offer Free One-Day Shipping With Prime Memberships
Amazon plans to ramp up the new one-day shipping standard throughout 2019.
Jim Cramer: My Bet's on the 'Ladies' in This Year's Draft
Analyzing this year's stock draft contest and individual stock-picking vs. indexing.
Ford Stock Jumps As Automaker Rolls Past Analyst Estimates
Ford shares shifted into overdrive in after-hours trading on Thursday as the No. 2 U.S. automaker cruised to a handy earnings beat.
NY Attorney General To Probe Facebook's Collection of Email Addresses: Report
Facebook uploaded the email contacts of 1.5 million new users without asking permission, but says it was "unintentional."