Relative Strength Alert For Schweitzer-Mauduit International

Jan 9 2014, 12:06pm CST | by

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. Schweitzer-Mauduit International, Inc. (NYSE: SWM) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most “interesting” ideas that merit further research by investors.

But making Schweitzer-Mauduit International, Inc. an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of SWM entered into oversold territory, changing hands as low as $46.7134 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.

Click here to find out what 9 other oversold dividend stocks you need to know about, at DividendChannel.com »

In the case of Schweitzer-Mauduit International, Inc., the RSI reading has hit 29.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 53.9. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, SWM’s recent annualized dividend of 1.44/share (currently paid in quarterly installments) works out to an annual yield of 3.05% based upon the recent $47.25 share price.

A bullish investor could look at SWM’s 29.3 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 SWM 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.


Can your brain be trained to become a chart-predicting wizard? Click here to find out


According to the ETF Finder at ETFChannel.com, SWM makes up 3.66% of the S&P SmallCap Materials Portfolio ETF (NASD: PSCM) which is trading lower by about 0.4% on the day Thursday.

Source: Forbes Business

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Interesting LNG Put And Call Options For June 6th
Investors in Cheniere Energy Inc. (AMEX: LNG) saw new options begin trading today, for the June 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the LNG options chain for the new...
 
 
Interesting GMCR Put And Call Options For June 6th
Investors in Keurig Green Mountain Inc (NASD: GMCR) saw new options become available today, for the June 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the GMCR options chain for...
 
 
Relevant Or Relic? Take Our Daughters And Sons To Work Day Faces New Challenges
Those who grew up in the 1990s may always think of today as a day when many girls missed school to go to work with mom or dad, but this morning, girls and boys across the country headed off to work with parents,...
 
 
Ingram Micro Becomes Oversold (IM)
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis...
 
 
 

Latest from the Network

Apple Posts Record Q1 On Strong iPhone Sales, Margin Gains
Apple announced a strong set of Q2 FY2014 results on Wednesday, beating guidance on both revenues and gross margins. The company saw its revenues grow 5% year-over-year to$45.6 billion in the second quarter, which...
Read more on Apple Balla
 
Seeds Of Apple's New Growth In Mobile Payments, 800 Million iTune Accounts
During Apple’s (AAPL) earnings conference call on Wednesday, it was revealed that Apple now has about 800 million iTunes accounts.  CEO Tim Cook described it as “staggering.”   This is an impressive achievement...
Read more on Apple Balla
 
Interesting LNG Put And Call Options For June 6th
Investors in Cheniere Energy Inc. (AMEX: LNG) saw new options begin trading today, for the June 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the LNG options chain for the new...
Read more on Business Balla
 
Interesting GMCR Put And Call Options For June 6th
Investors in Keurig Green Mountain Inc (NASD: GMCR) saw new options become available today, for the June 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the GMCR options chain for...
Read more on Business Balla
 
Relevant Or Relic? Take Our Daughters And Sons To Work Day Faces New Challenges
Those who grew up in the 1990s may always think of today as a day when many girls missed school to go to work with mom or dad, but this morning, girls and boys across the country headed off to work with parents,...
Read more on Business Balla
 
Ingram Micro Becomes Oversold (IM)
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis...
Read more on Business Balla
 
Xilinx is Oversold
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 —...
Read more on Business Balla
 
Innophos Holdings is Oversold
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 —...
Read more on Business Balla
 
Why The Average Investor's Investment Return Is So Low
According to the latest 2014 release of Dalbar’s Quantitative Analysis of Investor Behavior (QAIB), the average investor in a blend of equities and fixed-income mutual funds has garnered only a 2.6% net annualized rate...
Read more on Business Balla
 
Ducky Deal For Ackman
By Olga Oksman If it looks like a duck and quacks like a duck, legally, it may not be a duck. That seems to be the message from the unusual but very carefully structured partnership struck between serial acquirer...
Read more on Business Balla
 
 
Auto Balla Sexy Balla Sport Balla TV Balla Politics Balla Movie Balla Apple Balla Business Balla Ad Balla Celebrity Balla