Cisco Systems is Oversold

The formula dividends Channel Range occupies a dividend coverage universe thousands of dividend stocks, according to a proprietary formula designed to identify stocks that combine two important characteristics - strong fundamentals and valuation looks cheap. 4.17% CSCO Cisco Systems Inc. (NASD: CSCO) currently has an excellent rank in the top 25% of the coverage universe, which suggests that it is one of the top most "interesting" ideas deserve further investigation by investors.

But Cisco Systems, Inc. even more interesting and timely action to look, is the fact that in trading on Friday, shares of CSCO entered oversold territory, changing hands as low as $ 24.89 per share price . We define overbought 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 Cisco Systems, Inc., the RSI reading has hit 29.7 - by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 39.1. A share price decline - all things being equal - creates a better opportunity for dividend investors to capture a higher yield. In fact, recent annualized dividend of 0.84 / share (currently paid in quarterly installments) of CSCO giving an annual yield of 3.31% based on the recent share price $ 25.41.

A bullish investor could look CSCO 29.7 RSI reading today as a sign that the recent selloff is running out, and start looking for opportunities to points of entry into the buy side. Among the points of investors fundamentals dividends should investigate to determine if they CSCO is optimistic about its history of dividends.

In general, dividends are not always predictable; but, looking at the history chart below can help you judge whether the most recent dividend is likely to continue.