Dividend Channel’s DividendRank formula ranks a coverage universe of thousands of dividend stocks according to a unique formula designed to identify stocks that combine two key characteristics: strong fundamentals and cheap-looking valuations. To do. Armstrong World Industries Inc (Symbol: AWI) is currently ranked in the top 25% of the coverage universe, indicating that it ranks among the most “interesting” ideas worthy of further investigation by investors.
But what makes Armstrong World Industries Inc. an even more interesting and timely stock is the fact that AWI shares entered oversold territory in Friday trading, dropping to $69.415 per share. Define oversold areas using the Relative Strength Index (RSI). This is a technical analysis indicator used to measure momentum on a scale of 0 to 100. A stock is considered oversold when the RSI reading falls below 30. Armstrong World Industries, Inc. reached an RSI value of 29.4. By comparison, the average RSI for the universe of dividend stocks covered by the Dividend Channel is currently 35.6. Falling stock prices create better opportunities for dividend investors to capture higher yields, all else being equal. In fact, AWI’s recent annual dividend of 1.016/share (now in quarterly installments) translates into a 1.39% annual yield based on the recent $73.00 stock price.
Bullish investors can take today’s AWI reading of 29.4 RSI as a sign that the recent heavy sell-off is running out and start looking for entry point opportunities on the buy side. One of the fundamental data points that dividend investors should look at to determine if they are bullish on AWI is dividend history. In general, dividends are not always predictable. However, looking at the history chart below can help you determine if the recent dividend is likely to continue.
• Historical share price of EE
• FRLN market capitalization history
• Institutional holders of NINE
The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.