The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks according to a proprietary formula designed to identify those stocks that combine two important characteristics: strong fundamentals and a valuation that looks inexpensive.
Virtus Investment Partners Inc (Symbol: VRTS) presently holds a stellar rank, placing it in the top 10% of the coverage universe. This suggests it is among the most compelling ideas that merit further research by investors.
Making Virtus Investment Partners Inc an even more interesting and timely stock to watch is the fact that, during trading on Thursday, shares of VRTS entered oversold territory, changing hands as low as $167.13 per share.
We define oversold territory using the Relative Strength Index, or RSI, a technical analysis indicator that measures momentum on a scale from zero to 100. A stock is considered oversold if the RSI reading falls below 30. In the case of Virtus Investment Partners Inc, the RSI reading hit 29.2. By comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 39.0.
A falling stock price, all else being equal, often creates a better opportunity for dividend investors to capture a higher yield. Indeed, VRTS’s recent annualized dividend of $9 per share (currently paid in quarterly installments) translates to an annual yield of approximately 5.22%, based on the recent $172.33 share price.
A bullish investor could interpret VRTS’s 29.2 RSI reading today as a sign that the recent heavy selling pressure is in the process of exhausting itself, and may begin looking for attractive entry points on the buy side.
Among the fundamental data points dividend investors should investigate to decide if they are bullish on VRTS is its dividend history. While dividends are not always predictable, examining the historical dividend chart 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:
– HYBB YTD Return
– Funds Holding DHG
– RWOD YTD Return
*The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.*
https://www.nasdaq.com/articles/virtus-investment-partners-oversold
