Dividend Stock BX Is Oversold

Posted by D4L | Thursday, May 03, 2012 | | 0 comments »

Blackstone Group LP (NYSE: BX) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most “interesting” ideas that merit further research by investors. But making Blackstone Group LP an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of BX entered into oversold territory, changing hands as low as $13.25 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.

In the case of Blackstone Group LP, the RSI reading has hit 29.0 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 48.5. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, BX’s recent annualized dividend of 0.88/share (currently paid in quarterly installments) works out to an annual yield of 6.31% based upon the recent $13.95 share price.

Source: Forbes

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