The DividendRank components at Dividend Channel ranks a protection universe of thousands of dividend stocks, according to a proprietary components intended to establish individuals stocks that merge two important characteristics — solid fundamentals and a valuation that appears to be affordable. Cognizant Technological innovation Solutions Corp. (Image: CTSH) presently has an higher than ordinary rank, in the best 50% of the protection universe, which indicates it is among the the leading most “interesting” strategies that merit even more investigation by traders.
But generating Cognizant Technological innovation Alternatives Corp. an even more interesting and well timed inventory to look at, is the reality that in buying and selling on Thursday, shares of CTSH entered into oversold territory, switching hands as small as $63.26 per share. We determine oversold territory using the Relative Strength Index, or RSI, which is a technical evaluation indicator utilised to evaluate momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI looking at falls under 30.
In the situation of Cognizant Technologies Methods Corp., the RSI looking at has strike 29.7 — by comparison, the universe of dividend shares covered by Dividend Channel at the moment has an typical RSI of 40.3. A falling stock cost — all else staying equal — produces a superior opportunity for dividend traders to capture a bigger produce. Without a doubt, CTSH’s current annualized dividend of 1.08/share (presently paid in quarterly installments) is effective out to an once-a-year yield of 1.66% centered upon the latest $65.04 share selling price.
A bullish trader could look at CTSH’s 29.7 RSI examining these days as a indicator that the recent hefty promoting is in the procedure of exhausting alone, and start off to seem for entry point prospects on the buy aspect. Between the basic datapoints dividend traders ought to look into to choose if they are bullish on CTSH is its dividend heritage.
In general, dividends are not always predictable but, seeking at the record chart underneath can help in judging no matter whether the most new dividend is very likely to carry on.
The sights and viewpoints expressed herein are the views and viewpoints of the author and do not necessarily mirror those of Nasdaq, Inc.