RSI Alert: American Equity Investment Life Holding Now Oversold

Jhe 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. American Equity Investment Life Holding Co (Symbol: AEL) currently has an above-average ranking in the top 50% of the coverage universe, suggesting that it is among the most “interesting” ideas that deserve consideration. further research from investors.

But making American Equity Investment Life Holding Co an even more interesting and timely stock to watch is the fact that in Tuesday’s trading, AEL shares entered oversold territory, changing hands as low than $37.0179 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 American Equity Investment Life Holding Co, the RSI reading reached 29.6 – by comparison, the universe of dividend stocks hedged by Dividend channel currently has an average ROI of 44.9. A decline in stock prices – all things being equal – creates a better opportunity for dividend investors to capture a higher yield. Indeed, AEL’s recent annualized dividend of 0.34/share corresponds to an annual return of 0.89% based on the recent share price of $38.02.

A bullish investor might take AEL’s RSI of 29.6 today as a sign that the recent strong sell-offs are running out 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 AEL 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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