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. Mueller Industries Inc (MLI - Get Report) 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 Mueller Industries Inc an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of MLI entered into oversold territory, changing hands as low as $29.625 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 Mueller Industries Inc, the RSI reading has hit 29.0 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 50.2. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, MLI's recent annualized dividend of 0.40/share (currently paid in quarterly installments) works out to an annual yield of 1.33% based upon the recent $30.23 share price. A bullish investor could look at MLI's 29.0 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 MLI 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, MLI makes up 2.39% of the First Trust Water ETF ( FIW which is trading lower by about 0.4% on the day Friday.
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
Warning Signs Appear, but It Is Still Too Early to Go Full Bear
There are still dip buyers jumping on intraday weakness and the indices are staying above key technical levels.
'Avengers: Endgame' Sets Thursday Box Office Record, AMC Says
AMC says it will show the film an unprecedented 58,000 times at its theaters this weekend.
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.
Uber Sets IPO Price Range to Value Group at Between $80 Billion and $90 Billion
Uber Technologies set the indicative price of its planned IPO that would value the ride-sharing group at around $85 billion, well below the $120 billion valuation investors had pegged prior to the debut of rival Lyft month.