Four Dividend Stocks Shaping Constructive Patterns

By
A A A

Some dividend stocks in the Finance-Investment Management group either recently shaped or appear to be shaping first-stage bases.

A rising stock will interrupt its advance to consolidate, ideally shaping a base. Breakouts from the first or second consolidation work better than those from later consolidations.

So the first-stage base is a good thing. Also, any kind of a base is relatively rare right now. As The Big Picture pointed out in Wednesday's IBD, "today's buy opportunities are in pullbacks to the 10-week or 50-day moving averages."

The recent minor pullback in the market was too brief to give most stocks a chance to form new bases. Yet many of the investment-management stocks are far along the base-building process.

The money-manager stocks started declining in early to mid-January, bottomed in early February and then either moved sideways or worked on the right side of a base. The action leaves some in position for a breakout.

Some may object that breakouts are irrelevant to the income investor, who buys with the idea of holding. However, everybody can see the value of gaining an early cushion via a successful breakout. Only gains make a stock easy to hold.

T. Rowe Price Group ( TROW ) is one of the investment-management stocks now near a new high. The 10% deep, first-stage base could offer an entry at 84.51. The annualized dividend yield is 2.1%.

BlackRock ( BLK ) is approaching a 326.10 buy point in a first-stage base. The cup is about 13% deep. The yield is 2.4%.

State Street ( STT ) is about 9% off its high in a first-stage consolidation. It has more right-side work to do. The yield is 1.5%.

Brookfield Asset Management ( BAM ) recently cleared a 40.92 buy point for a second time. The first stab in late February led to a 5% correction. The most recent stab came in low volume. The stock remains in the 5% buy zone. The yield is 1.9%.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Personal Finance , Investing Ideas

Referenced Stocks: TROW , BLK , STT , BAM

Investor's Business Daily

Investor's Business Daily

More from Investor's Business Daily:

Related Videos

How to Save Money at Bars
How to Save Money at Bars           

Stocks

Referenced

Most Active by Volume

44,823,339
  • $75.19 ▲ 0.28%
43,744,171
  • $3.44 ▼ 0.29%
42,340,022
  • $97.671 ▲ 0.66%
34,178,145
  • $17.62 ▼ 1.23%
34,028,998
  • $15.59 ▼ 0.19%
32,055,708
  • $21.23 ▼ 2.41%
31,539,235
  • $3.76 ▲ 0.80%
30,434,619
    $34.25 unch
As of 7/25/2014, 04:03 PM