12 Oversold Stocks With High Dividend Growth Rates

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 |  Includes: ACIIQ, AMAT, CP, CSX, INFY, LOW, LUK, MON, MUR, SU, TLM, WMB
by: Kapitall

A fast-growing dividend is often desirable because it indicates recent increases in profitability, as well as a source of income that may continue to grow. As long as the dividend yield does not become unsustainably high, companies with healthy dividend growth are often attractive investments for income.

Here we present 12 companies that are technically oversold, with RSI (14) < 40. These stocks have all seen dividend growth over the past 5 years in excess of their industry averages.


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Do you think these dividends will continue to grow? Use this list as a starting-off point for your own analysis.

List sorted by difference between company 5-year dividend growth rate and industry average.

1. CSX Corp. (NYSE:CSX):
Railroads Industry. Market cap of $27.36B. RSI(14) at 37.14. Dividend yield at 1.93%. 5-year dividend growth rate at 35.44% vs. industry average at 3.84%. After a solid performance over the last year, CSX has pulled back during recent sessions. The stock is 4.04% below its SMA20 and 4.14% below its SMA50, but remains 13.04% above its SMA200. The stock has gained 38.53% over the last year.

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2. Suncor Energy Inc. (NYSE:SU):
Independent Oil & Gas Industry. Market cap of $62.23B. RSI(14) at 30.68. Dividend yield at 1.17%. 5-year dividend growth rate at 27.23% vs. industry average at 2.25%. It's been a rough couple of days for the stock, losing 6.21% over the last week.

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3. Applied Materials Inc. (NASDAQ:AMAT): Semiconductor Equipment & Materials Industry. Market cap of $19.16B. RSI(14) at 36.16. Dividend yield at 2.2%. 5-year dividend growth rate at 24.57% vs. industry average at 2.44%. The stock has gained 12.56% over the last year.

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4. Lowe's Companies Inc. (NYSE:LOW): Home Improvement Stores Industry. Market cap of $32.75B. RSI(14) at 31.49. Dividend yield at 1.77%. 5-year dividend growth rate at 30.73% vs. industry average at 8.86%. The stock has gained 0.24% over the last year.

5. Arch Coal Inc. (ACI): Industrial Metals & Minerals Industry. Market cap of $4.74B. RSI(14) at 28.32. Dividend yield at 1.53%. 5-year dividend growth rate at 19.51% vs. industry average at 0.15%. It's been a rough couple of days for the stock, losing 9.02% over the last week.

6. Infosys Technologies Limited (NASDAQ:INFY):
Technical & System Software Industry. Market cap of $35.74B. RSI(14) at 37.54. Dividend yield at 1.07%. 5-year dividend growth rate at 29.67% vs. industry average at 13.75%. The stock has performed poorly over the last month, losing 14.31%.

7. Talisman Energy Inc. (NYSE:TLM): Independent Oil & Gas Industry. Market cap of $21.45B. RSI(14) at 28.89. Dividend yield at 1.3%. 5-year dividend growth rate at 17.01% vs. industry average at 3.83%. It's been a rough couple of days for the stock, losing 6.76% over the last week.

8. Jefferies Group Inc. (JEF):
Investment Brokerage Industry. Market cap of $4.48B. RSI(14) at 34.3. Dividend yield at 1.32%. 5-year dividend growth rate at 3.3% vs. industry average at -9.6%. The stock is a short squeeze candidate, with a short float at 5.97% (equivalent to 9.79 days of average volume). The stock has lost 8.81% over the last year.

9. Monsanto Co. (NYSE:MON): Agricultural Chemicals Industry. Market cap of $33.97B. RSI(14) at 35.28. Dividend yield at 1.77%. 5-year dividend growth rate at 26.01% vs. industry average at 14.15%. The stock has gained 16.47% over the last year.

10. Murphy Oil Corporation (NYSE:MUR): Oil & Gas Refining & Marketing Industry. Market cap of $12.71B. RSI(14) at 32.13. Dividend yield at 1.67%. 5-year dividend growth rate at 18.47% vs. industry average at 7.28%. It's been a rough couple of days for the stock, losing 6.54% over the last week.

11. Canadian Pacific Railway Limited (NYSE:CP):
Railroads Industry. Market cap of $10.40B. RSI(14) at 29.53. Dividend yield at 2.04%. 5-year dividend growth rate at 14.82% vs. industry average at 3.84%. It's been a rough couple of days for the stock, losing 5.74% over the last week.

12. Williams Companies, Inc. (NYSE:WMB): Oil & Gas Pipelines Industry. Market cap of $17.52B. RSI(14) at 37.1. Dividend yield at 2.69%. 5-year dividend growth rate at 14.17% vs. industry average at 3.83%. After a solid performance over the last year, WMB has pulled back during recent sessions. The stock has gained 44.14% over the last year.

*Dividend growth rates sourced from Reuters, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.