The DividendRank components at Dividend Channel ranks a protection universe of hundreds of dividend shares, in keeping with a proprietary components designed to establish these shares that mix two essential traits — robust fundamentals and a valuation that appears cheap. Kraft Heinz presently has a wonderful rank, within the high 25% of the protection universe, which suggests it’s among the many high most “attention-grabbing” concepts that benefit additional analysis by traders.
Start slideshow: 10 Oversold Dividend Stocks »
However making Kraft Heinz an much more attention-grabbing and well timed inventory to have a look at, is the truth that in buying and selling on Friday, shares of KHC entered into oversold territory, altering palms as little as $32.89 per share. We outline oversold territory utilizing the Relative Power Index, or RSI, which is a technical evaluation indicator used to measure momentum on a scale of zero to 100. A inventory is taken into account to be oversold if the RSI studying falls beneath 30.
Within the case of Kraft Heinz Co, the RSI studying has hit 29.5 — by comparability, the universe of dividend shares lined by Dividend Channel presently has a mean RSI of 51.8. A falling inventory value — all else being equal — creates a greater alternative for dividend traders to seize a better yield. Certainly, KHC’s current annualized dividend of 1.6/share (presently paid in quarterly installments) works out to an annual yield of 4.84% based mostly upon the current $33.09 share value.
A bullish investor might have a look at KHC’s 29.5 RSI studying right this moment as an indication that the current heavy promoting is within the means of exhausting itself, and start to search for entry level alternatives on the purchase aspect. Among the many basic datapoints dividend traders ought to examine to resolve if they’re bullish on KHC is its dividend historical past. Generally, dividends aren’t all the time predictable; however, trying on the historical past chart beneath may help in judging whether or not the latest dividend is more likely to proceed.
KHC
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