Best Oversold Dividend Stocks for March 2023

Here are 3 of the best oversold dividend stocks for March 2023.

Cigna Corp. (CI) Analysis

First is health insurer Cigna Corp (CI). The healthcare stock is down 14% in 2023.

This company sports a healthy forward dividend yield of 1.75%. The latest quarterly dividend increased to $1.23 per share.

However, the stock has come under selling pressure recently which you can see in the MAPsignals chart below. YTD there’ve been 4 unusually large volume outflows (red bars):

This could indicate the stock is near-term oversold. With a 12-month forward P/E of 11.09, shares could be attractive after a pullback. According to FactSet, the company is estimated to earn $28.28 per share in fiscal year 2024.

High-quality stocks can be attractive on pullbacks.

Home Depot, Inc. (HD) Analysis

Next up is Home Depot, Inc. (HD) which is a large home improvement retailer. The stock is underperforming this year falling 7% in 2023.

Since February there’ve been 3 days where the stock fell in price alongside outsized volumes. That can mean there’s institutional selling:

The company recently raised its quarterly dividend to $2.09 per share, making the forward yield a solid 2.89%. With a 12-month forward P/E pegged at 18.1X, this name could be approaching oversold conditions.

Companies with rich histories of annually raising dividends has typically rewarded investors. This pullback could represent an opportunity.

CVS Health Corp. (CVS) Analysis

The number 3 oversold candidate is healthcare firm CVS Health Corp. (CVS). This drugstore chain has been under a lot of pressure in 2023, falling 13%.

Just in 2023, the stock has seen 10 unusual sell days as you’ll see in the chart below:

All of this sell pressure has lifted the forward dividend yield to 3%, a level not seen since late 2020. The company is still expected to earn $9.16 per share in fiscal year 2024. The forward 12-month PE sits at just over 9X.

This could be a solid addition to a dividend portfolio.

Bottom Line and Explanatory Video

CI, HD, & CVS represent 3 of the best oversold stocks for March 2023 in my opinion. Unusual selling pressure has pushed the dividend yields to attractive levels, making these stocks worthy of extra attention.

To learn more about MAPsignals’ institutional process please visit: www.mapsignals.com

Disclosure: As of the time of this writing, the author holds long positions in HD & CVS in personal and managed accounts at the time of this writing, but not position in CI.

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