12 Oversold Stocks With Strong Dividend Coverage
Published May 17, 2011 on Seeking Alpha

A company’s dividend is only as reliable as the company’s cash flows from which they’re paid. When choosing an income investment, it is important to check dividend sustainability by looking at the strength of cash flows. With that in mind, we constructed a list of oversold stocks that have impressive dividend coverage. We started with a universe of about 120 companies with RSI(14) below 40. We then calculated trailing 12-month (TTM) operating cash flow per share, and TTM levered free cash flow per share, and identified those with the best dividend coverage. Do you trust these dividends to continue? Use this list as a starting-off point for your own analysis. List sorted by operating cash flow per share per $1 of dividend per share.1. Computer Sciences Corporation (CSC): Information Technology Services Industry. Market cap of $6.93B. RSI(14) at 36.98. Dividend yield at 1.8%, annual dividend per share at $0.80.... Read more