Northern Trust Corp is oversold

Dividend Channel’s DividendRank Formula ranks a coverage universe of thousands of dividend-paying stocks, using a proprietary formula designed to identify stocks that combine two important characteristics: strong fundamentals and a valuation that appears inexpensive. Northern Trust Corp (Symbol: NTRS) currently ranks highly, in the top 25% of the coverage universe, suggesting it is among the most “interesting” ideas worth exploring by investors .

But making Northern Trust Corp an even more interesting and timely stock to watch is the fact that in Monday’s trading, shares of NTRS entered oversold territory, changing hands as low as $86.755 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 oversold if the RSI reading falls below 30. In the case of Northern Trust Corp, the RSI reading reached 28.3 – in comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 32.8 . A decline in stock prices – all things being equal – creates a better opportunity for dividend investors to capture a higher yield. Indeed, NTRS’ recent annualized dividend of 3/share (currently paid in quarterly installments) corresponds to an annual return of 3.39% based on the recent share price of $88.47.

A bullish investor might take today’s RSI of 28.3 from the NTRS as a sign that the recent strong selloffs are running out and are beginning to look for entry point opportunities on the buy side. Among the fundamental data points dividend investors should investigate to decide if they are bullish on NTRS is its dividend history. In general, dividends are not always predictable; However, examining the chart below can help determine if the most recent dividend is likely to continue.

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