In trading on Tuesday, shares of Williams Partners L.P. (NYSE:WPZ) entered into overbought territory, changing hands as high as $63.14 per share. 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 to be overbought if the RSI reading rises above 70.
In the case of Williams Partners L.P., the RSI reading has hit 70.9 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 61.4.
Investors could look at WPZ's 70.9 reading as a sign that the recent heavy buying is in the process of exhausting itself, which could bring a pullback in the stock. The chart below shows the one year performance of WPZ shares:
Looking at the chart above, WPZ's low point in its 52 week range is $44.81 per share, with $63.14 as the 52 week high point — that compares with a last trade of $62.88.
Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on WPZ 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.
WPZ Dividend History
* Data may be adjusted for splits; we are not responsible for data errors; always verify data with the company.
WPZ operates in the Oil & Gas Equipment & Services sector, among companies like Enbridge Energy Partners, L.P. (NYSE:EEP) which is down about 0.3% today, and Magellan Midstream Partners LP (NYSE:MMP) trading lower by about 0.9%. Below is a three month price history chart comparing the stock performance of WPZ, versus EEP and MMP.
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