Relative Strength Alert For Oaktree Capital Group

Apr 10 2014, 3:27pm CDT | 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. Oaktree Capital Group LLC (NYSE: OAK) 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 Oaktree Capital Group LLC an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of OAK entered into oversold territory, changing hands as low as $52.76 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 »

In the case of Oaktree Capital Group LLC, the RSI reading has hit 25.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 51.1. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, OAK’s recent annualized dividend of 4.00/share (currently paid in quarterly installments) works out to an annual yield of 7.31% based upon the recent $54.72 share price.

A bullish investor could look at OAK’s 25.3 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 OAK 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: Find out what Frank Bifulco is holding in the Dividend OverDrive Portfolio with a free 30 day trial and a 20% off coupon from Forbes

According to the ETF Finder at, OAK makes up 1.23% of the Guggenheim Mid-Cap Core ETF (AMEX: CZA) which is trading lower by about 1.3% on the day Thursday.


<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

Amazon Black Friday 2015 Sale is Live: The Best Deals
Amazon Black Friday 2015 Sale is Live: The Best Deals
The Black Friday 2015 sale on Amazon is an 8 Day event.
Amazon Black Friday 2015 Deals Unveiled
Amazon Black Friday 2015 Deals Unveiled
The Black Friday 2015 Deals offered in the Amazon Black Friday 2015 Sale are here.
Sam&#039;s Club Holiday Savings Celebration Sale 2015 Kicked Off Online
Sam's Club Holiday Savings Celebration Sale 2015 Kicked Off Online
The Sam's Club sale on Saturday November 14 is the first big Black Friday 2015 sale of the year and the Black Friday deals are online now ahead of the stores opening.
Find Hot Black Friday 2015 Deals
Find Hot Black Friday 2015 Deals
The Black Friday 2015 Ads are rolling advertising the Black Friday 2015 deals.