Featured MNV Articles:

Top-Ranked LM Ericsson Telephone Co Getting Very Oversold

Now Playing: Learn About The RSI If the video does not load after a few moments, Upgrade to the Latest Flash Player.

Start slideshow:
10 Oversold Dividend Stocks »

But making LM Ericsson Telephone Co an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of ERIC entered into oversold territory, changing hands as low as $8.59 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 LM Ericsson Telephone Co, the RSI reading has hit 29.7 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 59.4. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, ERIC's recent annualized dividend of 0.368659/share works out to an annual yield of 3.61% based upon the recent $10.23 share price.

A bullish investor could look at ERIC's 29.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ERIC is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.

According to the ETF Finder at ETF Channel, ERIC makes up 2.39% of the SPDR Morgan Stanley Technology ETF (AMEX:MTK) which is trading lower by about 1.1% on the day Wednesday.

     See what other ETFs contain ERIC »
     See what other stocks are held by MTK »

Find the right mix of model portfolios today at PortfolioChannel.com