The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks according to a proprietary formula designed to identify those stocks that combine two important characteristics: strong fundamentals and a valuation that looks inexpensive.
Graphic Packaging Holding Co (Symbol: GPK) presently has a stellar rank, landing in the top 10% of the coverage universe. This suggests it is among the most “interesting” ideas that merit further research by investors.
What makes Graphic Packaging Holding Co an even more interesting and timely stock to watch is that, during trading on Friday, shares of GPK entered oversold territory, changing hands as low as $17.24 per share.
### What Does Oversold Territory Mean?
We define oversold territory using the Relative Strength Index, or RSI, a technical analysis indicator used to measure momentum on a scale from zero to 100. A stock is considered oversold if the RSI reading falls below 30.
In the case of Graphic Packaging Holding Co, the RSI reading has hit 27.7. By comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 50.7.
### Dividend Yield Opportunity
A falling stock price, all else being equal, can create a better opportunity for dividend investors to capture a higher yield. GPK’s recent annualized dividend of $0.44 per share (currently paid in quarterly installments) works out to an annual yield of 2.49% based on the recent $17.68 share price.
A bullish investor could interpret GPK’s 27.7 RSI reading today as a sign that the recent heavy selling is exhausting itself and begin to look for entry point opportunities on the buy side.
### Fundamental Data Points to Consider
Among the fundamental data points dividend investors should investigate to decide if they remain bullish on GPK is its dividend history. Dividends are not always predictable, but reviewing the dividend history can provide insight into whether the most recent dividend is likely to continue.
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### Related Information
– VKQ market cap history
– QTI YTD Return
– MCS market cap history
*The views and opinions expressed herein are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.*
https://www.nasdaq.com/articles/relative-strength-alert-graphic-packaging-holding
