DividendChannel.com

RSI Alert: United States Steel Now Oversold

By Dividend Channel Staff, Thursday, June 30, 11:35 AM ET

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. United States Steel Corp. (NYSE:X) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.

But making United States Steel Corp. an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of X entered into oversold territory, changing hands as low as $17.56 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 United States Steel Corp., the RSI reading has hit 29.2 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 44.3. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, X's recent annualized dividend of 0.2/share (currently paid in quarterly installments) works out to an annual yield of 1.08% based upon the recent $18.54 share price.

A bullish investor could look at X's 29.2 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 X 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.


Special Offer: Receive our best dividend ideas directly to your inbox each afternoon with the Dividend Channel Premium Newsletter


This Article's Word Cloud:   Among   Arial   Channel   Corp   Dividend   DividendRank   Indeed   Index   NYSE   Newsletter   Offer   Oversold   Premium   Receive   Relative   Special   Start   States   Steel   Stocks   Strength   United   average   below   bullish   coverage   currently   dividend   escape   fillColor   formula   history   ideas   interesting   investors   look   mdash   most   oversold   price   reading   recent   share   stock   stocks   territory   that   universe   which   yield

RSI Alert: United States Steel Now Oversold | www.DividendChannel.com

Copyright © 2010 - 2024, All Rights Reserved Nothing in Dividend Channel is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy. Video widget and dividend videos powered by Market News Video. Quote data delayed at least 20 minutes; data powered by Ticker Technologies, and Mergent. Contact Dividend Channel; Meet Our Editorial Staff.