Relative Strength Alert For Main Street Capital

May 9 2014, 10:59am 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. Main Street Capital Corporation (NYSE: MAIN) 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 Main Street Capital Corporation an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of MAIN entered into oversold territory, changing hands as low as $28.69 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 Main Street Capital Corporation, the RSI reading has hit 23.1 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 54.0. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, MAIN’s recent annualized dividend of 1.98/share (currently paid in monthly installments) works out to an annual yield of 6.42% based upon the recent $30.82 share price.

A bullish investor could look at MAIN’s 23.1 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 MAIN 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: Manage the risks of the markets better with a free 30 day trial to the Strategic Risk Management System.

According to the ETF Finder at ETFChannel.com, MAIN makes up 4.60% of the BDC Income ETF (AMEX: BIZD) which is trading lower by about 0.7% on the day Friday.

/>/>
 
 

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

Amazon Black Friday 2014 Sale has Started
Amazon Black Friday 2014 Sale has Started
The Amazon Black Friday 2014 sale is officially here. Earlier than ever Amazon offers Black Friday 2014 deals.
 
 
New factor in liver cancer progression discovered
Vienna, Nov 21 (IANS) Researchers from the Medical University of Vienna in Austria have discovered a new factor in the development and progression of the most common type of liver cancer, hepatocellular carcinoma (HCC), the university has said.
 
 
Rare worm in British man's brain sequenced
London, Nov 21 (IANS) For the first time, the genome of a rarely seen tapeworm - residing in a British man's brain for four years - has been sequenced, offering new opportunities to diagnose and treat this invasive parasite.
 
 
'Sexual orientation not a choice, influenced by genetics'
London, Nov 21 (IANS) In the largest study of its kind, genetic analysis of 409 pairs of gay brothers, including sets of twins, has linked sexual orientation in men with two regions of the human genome.
 
 
 

Latest from the Network

Amazon Black Friday 2014 Sale has Started
The Amazon Black Friday 2014 Sale has been released. The Amazon Black Friday 2014 begins earlier than ever before. In past years the Amazon Black Friday deals week started on Sunday.Amazon will release new deals as...
Read more on Ad Balla
 
iPhone 6 Plus Delivery Time Reduced
The customers will receive the 5.5-inch iPhone 6 Plus sooner than the previous time, as the delivery time of the device has been enhanced.According to Mac Rumors, the delivery time of the 16GB iPhone 6 Plus has been...
Read more on Apple Balla
 
Best Buy Reveals Pre-Black Friday Offers for Apple Devices
Ahead of the Black Friday, Best Buy decides to shake up the market, as it begins offering some great deals for the Apple devices.According to Mac Rumors, Best Buy has reduced the price of the iPad Air by $80 to $100,...
Read more on Apple Balla
 
Saina goes down in Hong Kong Open quarters
Hong Kong, Nov 21 (IANS) Top Indian shuttler Saina Nehwal could not replicate her last week's China Open title win as she went down in straight games in the women's singles quarterfinals of the $350,000 Hong Kong Open...
Read more on Sport Balla
 
'Earth on track to warmest year on record'
Washington, Nov 21 (IANS) The globally averaged temperatures for October as well as the January-to-October period were both the highest on record since record keeping began in 1880, the US National Oceanic and...
Read more on Politics Balla
 
New factor in liver cancer progression discovered
Vienna, Nov 21 (IANS) Researchers from the Medical University of Vienna in Austria have discovered a new factor in the development and progression of the most common type of liver cancer, hepatocellular carcinoma (HCC...
Read more on Business Balla
 
Faris, Pratt open up about premature baby birth
Los Angeles, Nov 21 (IANS) Actress Anna Faris and husband Chris Pratt say that they were devasted when informed about the premature birth of their son. However their fath in god was restored when they saw the child....
Read more on Celebrity Balla
 
Rare worm in British man's brain sequenced
London, Nov 21 (IANS) For the first time, the genome of a rarely seen tapeworm - residing in a British man's brain for four years - has been sequenced, offering new opportunities to diagnose and treat this invasive...
Read more on Business Balla
 
Court orders inclusion of co-accused in Musharraf case
Islamabad, Nov 21 (IANS) A special court in Pakistan Friday ordered the inclusion of three co-accused in the treason case against former president Pervez Musharraf and proceedings against those who advised him to...
Read more on Politics Balla
 
'Sexual orientation not a choice, influenced by genetics'
London, Nov 21 (IANS) In the largest study of its kind, genetic analysis of 409 pairs of gay brothers, including sets of twins, has linked sexual orientation in men with two regions of the human genome. Two genes, one...
Read more on Business Balla