The DividendRank components at Dividend Channel ranks a protection universe of 1000’s of dividend shares, in line with a proprietary components designed to establish these shares that mix two essential traits — sturdy fundamentals and a valuation that appears cheap. Knight-Swift Transportation Holdings Inc (Image: KNX) presently has an above common rank, within the prime 50% of the protection universe, which suggests it’s among the many prime most “fascinating” concepts that advantage additional analysis by traders.
However making Knight-Swift Transportation Holdings Inc an much more fascinating and well timed inventory to take a look at, is the truth that in buying and selling on Tuesday, shares of KNX entered into oversold territory, altering fingers as little as $44.02 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 Knight-Swift Transportation Holdings Inc, the RSI studying has hit 28.4 — by comparability, the universe of dividend shares lined by Dividend Channel presently has a mean RSI of 48.4. A falling inventory worth — all else being equal — creates a greater alternative for dividend traders to seize the next yield. Certainly, KNX’s latest annualized dividend of 0.72/share (presently paid in quarterly installments) works out to an annual yield of 1.60% primarily based upon the latest $44.98 share worth.
A bullish investor might take a look at KNX’s 28.4 RSI studying right this 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 elementary datapoints dividend traders ought to examine to resolve if they’re bullish on KNX is its dividend historical past.
On the whole, dividends usually are not at all times predictable; however, wanting on the historical past chart beneath can assist in judging whether or not the newest 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 mirror these of Nasdaq, Inc.
