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. Universal Health Realty Income Trust (UHT - 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 Universal Health Realty Income Trust an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of UHT entered into oversold territory, changing hands as low as $60.126 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 Universal Health Realty Income Trust, the RSI reading has hit 29.6 — 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, UHT's recent annualized dividend of 2.62/share (currently paid in quarterly installments) works out to an annual yield of 4.29% based upon the recent $61.13 share price. A bullish investor could look at UHT's 29.6 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 UHT 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, UHT makes up 1.68% of the ProShares Russell 2000 Dividend Growers ETF ( SMDV) which is trading lower by about 0.3% 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
Just Don't Do It: Nike Leads Push Against 'Catastrophic' Shoe Tariffs
Nike lead a group of athletic apparel and shoe companies in an effort late Monday to urge President Donald Trump to reconsider placing tariffs on footwear made in China and imported into the United States, calling the levies a "catastrophic" move that will cost U.S. consumers $7 billion a year.
Dow Futures Gain, Global Tech Rebounds, as US Eases Restrictions on Huawei
Global stocks snapped back Tuesday, reversing much of the previous day's decline, following a move by the Commerce Department to ease restrictions on China's Huawei Technologies ability to do business with U.S. firms that soothed investor concern of an all-out tech war between Washington and Beijing.