While the market may be down, there are actually quite few companies that remain in oversold territory. This is when the Relative Strength Index (RSI) falls below 30. Yet these companies do exist if you find them at the right time.
One of these companies included dividend stock Jamieson Wellness (TSX:JWEL). The company’s RSI remains at 26.26 as of writing, which is well within oversold territory. Let’s look at why you may want to consider Jamieson stock on the TSX today.
Poor results lead to a decline
Jamieson stock has been one of many companies that continues to see a decline from the current market scenario. Jamieson recently reported a 49% increase in revenue year over year, yet it fell by 7.8% after its earnings report.
This came from the company warning its 2023 earnings before interest, taxes, depreciation and amortization (EBITDA) could decline by 175 basis points. Even so, the company managed to have solid earnings, with revenue rising to $192.8 million from $129.8 million, slightly missing earnings estimates by analysts.
Bottom line was that consumer demand for products remained strong, and it will merely be short-term costs that keep EBITDA down. Therefore, the company rebound in the future.
Think and look long term
Jamieson stock has suffered since the pandemic, when retail sales dropped from the inability to get products in store. However, since that time there has been improvements, and if you look at the long term, there is definitely a reason to consider the dividend stock.
Shares of the company have only been on the market since 2017. In that time, even after the fall, shares have doubled. The stock has yo-yoed around in the past year, falling since the beginning of the year with the outlook reported. However, shares are still down by just 3% in the last year, which is still slightly better than the performance of the TSX today.
The company also remains a household name with a diverse range of products that continue to be present in most grocery and pharmacy locations. While short-term issues may effect the stock, long-term investors are bound to see shares recover and then some.
Bring in higher passive income than usual
If you were to look at the pre-drop price of Jamieson stock and compare it with what you could bring in from passive income now, the difference is drastic. Shares of Jamieson stock traded at $38.84 at 52-week highs. Right now, those shares are down to $31.49 at the time of writing.
Let’s now look at what investors could bring in from a $10,000 investment when considering the difference in share price.
|COMPANY||RECENT PRICE||NUMBER OF SHARES||DIVIDEND||TOTAL PAYOUT||FREQUENCY|
|JWEL — 52-Week Highs||$38.84||257||$0.68||$175||Quarterly|
|JWEL — Now||$31.49||318||$0.68||$216.24||Quarterly|
As you can see, investors would bring in an extra $41.24 from this investment alone. Reinvested, this is an amount that could certainly add up over the years. Never mind the returns you’re bound to receive from keeping a long-term hold of Jamieson stock for years to come.