The DividendRank system at Dividend Channel ranks a coverage universe of thousands of dividend shares, according to a proprietary system made to detect all those shares that merge two critical characteristics — strong fundamentals and a valuation that appears to be like low-cost. Cognizant Know-how Remedies Corp. (Image: CTSH) presently has an over common rank, in the top 50% of the coverage universe, which indicates it is among the the top most “exciting” ideas that merit further study by traders.
But making Cognizant Engineering Options Corp. an even a lot more fascinating and timely stock to look at, is the point that in trading on Thursday, shares of CTSH entered into oversold territory, modifying hands as low as $63.26 for every share. We determine oversold territory employing the Relative Energy Index, or RSI, which is a technological investigation indicator applied to evaluate momentum on a scale of zero to 100. A stock is deemed to be oversold if the RSI studying falls down below 30.
In the scenario of Cognizant Technological know-how Solutions Corp., the RSI reading has strike 29.7 — by comparison, the universe of dividend stocks coated by Dividend Channel currently has an regular RSI of 40.3. A slipping stock selling price — all else remaining equivalent — produces a superior opportunity for dividend traders to capture a bigger yield. In truth, CTSH’s new annualized dividend of 1.08/share (presently paid in quarterly installments) is effective out to an once-a-year yield of 1.66% dependent on the latest $65.04 share price.
A bullish investor could look at CTSH’s 29.7 RSI examining nowadays as a indication that the current large advertising is in the approach of exhausting by itself, and begin to appear for entry level chances on the invest in aspect. Among the the essential datapoints dividend buyers need to examine to come to a decision if they are bullish on CTSH is its dividend historical past.
In common, dividends are not constantly predictable but, looking at the record chart underneath can aid in judging no matter if the most latest dividend is probable to continue on.
The sights and thoughts expressed herein are the views and views of the author and do not necessarily mirror all those of Nasdaq, Inc.