The DividendRank method at Dividend Channel ranks a protection universe of 1000’s of dividend shares, based on a proprietary method designed to establish these shares that mix two essential traits — robust fundamentals and a valuation that appears cheap. PPG Industries Inc (Image: PPG) presently has an above common rank, within the high 50% of the protection universe, which suggests it’s among the many high most “attention-grabbing” concepts that advantage additional analysis by traders.
However making PPG Industries Inc an much more attention-grabbing and well timed inventory to have a look at, is the truth that in buying and selling on Tuesday, shares of PPG entered into oversold territory, altering fingers as little as $122.04 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 PPG Industries Inc, the RSI studying has hit 27.5 — by comparability, the universe of dividend shares coated by Dividend Channel at present has a median RSI of 54.7. A falling inventory value — all else being equal — creates a greater alternative for dividend traders to seize a better yield. Certainly, PPG’s latest annualized dividend of two.72/share (at present paid in quarterly installments) works out to an annual yield of two.16% based mostly upon the latest $125.96 share value.
A bullish investor might have a look at PPG’s 27.5 RSI studying at the moment as an indication that the latest heavy promoting is within the means of exhausting itself, and start to search for entry level alternatives on the purchase facet. Among the many basic datapoints dividend traders ought to examine to resolve if they’re bullish on PPG is its dividend historical past.
Typically, dividends aren’t all the time predictable; however, wanting on the historical past chart beneath will help in judging whether or not the latest dividend is more likely to proceed.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
