The DividendRank components at Dividend Channel ranks a coverage universe of countless numbers of dividend stocks, according to a proprietary formulation designed to identify these stocks that blend two critical traits — sturdy fundamentals and a valuation that appears to be like reasonably priced. Security Insurance Group, Inc. (Symbol: SAFT) presently has an exceptional rank, in the prime 25% of the coverage universe, which indicates it is among the best most “attention-grabbing” tips that benefit even further investigate by investors.
But creating Basic safety Insurance policy Group, Inc. an even additional interesting and well timed stock to glimpse at, is the truth that in investing on Thursday, shares of SAFT entered into oversold territory, switching palms as small as $83.11 for each share. We outline oversold territory applying the Relative Strength Index, or RSI, which is a technological analysis indicator made use of to measure momentum on a scale of zero to 100. A stock is regarded as to be oversold if the RSI looking at falls beneath 30.
In the circumstance of Protection Insurance policies Group, Inc., the RSI reading has hit 29.8 — by comparison, the universe of dividend shares coated by Dividend Channel at present has an typical RSI of 36.7. A falling inventory value — all else remaining equivalent — produces a better option for dividend investors to seize a higher produce. In fact, SAFT’s the latest annualized dividend of 3.6/share (now paid out in quarterly installments) is effective out to an annual yield of 4.24% primarily based on the the latest $84.89 share price tag.
A bullish investor could look at SAFT’s 29.8 RSI looking at nowadays as a signal that the new major providing is in the course of action of exhausting alone, and start out to search for entry level opportunities on the get aspect. Amongst the basic datapoints dividend buyers need to examine to make a decision if they are bullish on SAFT is its dividend background.
In normal, dividends are not generally predictable but, looking at the historical past chart under can assistance in judging whether the most latest dividend is probable to go on.
The views and views expressed herein are the views and viewpoints of the creator and do not always reflect those of Nasdaq, Inc.