But making UBS Group AG an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of UBS entered into oversold territory, changing hands as low as $41.82 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 UBS Group AG, the RSI reading has hit 28.8 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 58.5. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, UBS's recent annualized dividend of 0.55/share works out to an annual yield of 1.25% based upon the recent $43.87 share price.
A bullish investor could look at UBS's 28.8 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 UBS 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.
Click here to find out what 9 other oversold dividend stocks you need to know about »
Also see:
AIMC shares outstanding history CIA Options Chain
IJR Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
