CDW Corp Shows Signs of Opportunity with Oversold Status
An In-Depth Look at the Company’s Stock and Dividend Potential
The DividendRank formula from Dividend Channel evaluates thousands of dividend stocks, using a special method to find those with strong fundamentals and an appealing valuation. Currently, CDW Corp (Symbol: CDW) is ranked within the top 25% of this coverage universe, indicating it is one of the more intriguing stocks for investors to explore further.
On Wednesday, CDW’s stock captured attention as it dipped into oversold territory, trading at $198.76 per share. The term “oversold” comes from the Relative Strength Index (RSI), a tool used in technical analysis to assess momentum. Typically, a stock is deemed oversold if its RSI falls below 30.
For CDW Corp, the RSI reading stands at 29.0. In comparison, the average RSI for dividend stocks in the Dividend Channel universe is 50.4. A declining stock price can provide a valuable opportunity for dividend investors looking to secure a higher yield. Presently, CDW’s annualized dividend of $2.48 per share, distributed quarterly, offers an annual yield of 1.13% based on the recent price of $219.90 per share.
Investors with a bullish outlook might interpret CDW’s current RSI of 29.0 as a sign that recent selling pressure is easing, prompting a search for potential buying opportunities. Additionally, potential investors should review CDW’s dividend history to assess whether the latest dividend is likely to be sustained.
While dividends are not guaranteed, examining the historical chart below can provide insights into the company’s past performance and future reliability.
Click here to discover 9 other oversold dividend stocks worth your attention »
Additional Resources:
- EQD Options Chain
- COP Price Target
- Institutional Holders of LPAA
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
