Central American apartment communities are oversold

The RankDividend formula to Dividend channel ranks a coverage universe of thousands of dividend-paying stocks, according to a proprietary formula designed to identify stocks that combine two important characteristics – strong fundamentals and a valuation that appears inexpensive. Mid-America Apartment Communities Inc (Symbol: MAA) currently has an excellent ranking, in the top 25% of the universe of coverage, which suggests that it is among the most “interesting” ideas that deserve further research. from investors.

But making Mid-America Apartment Communities Inc an even more interesting and timely stock to watch is the fact that during Thursday’s trading, MAA shares entered oversold territory, changing hands as low as 141 $.13 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 Mid-America Apartment Communities Inc, the RSI reading reached 28.8 – by comparison, the universe of dividend stocks hedged by Dividend channel currently has an average ROI of 41.2. A decline in stock prices – all things being equal – creates a better opportunity for dividend investors to capture a higher yield. Indeed, MAA’s recent annualized dividend of 5/share (currently paid in quarterly installments) corresponds to an annual return of 3.45% based on the recent share price of $145.12.

A bullish investor might take today’s MAA reading of 28.8 RSI as a sign that the recent selloff is running out of steam and starting 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 MAA 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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