In trading on Thursday, shares of Waste Management, Inc. (NYSE: WM) entered into overbought territory, changing hands as high as $ 33.80 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 Waste Management, Inc. , the RSI reading has hit 70.7 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 62.4.

Click here to find out which 9 other overbought dividend stocks you need to know about, at DividendChannel.com »

Investors could look at WM’s 70.7 reading as a sign that the recent heavy buying is in the process of winding down, which could bring a pullback in the stock. The chart below shows the one year performance of WM shares:

Waste Management, Inc.  1 Year Performance Chart

Looking at the chart above, WM’s low point in its 52 week range is $ 27.75 per share, with $ 39.69 as the 52 week high point — that compares with a last trade of $ 33.74.

Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on WM 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.

WM Dividend History
Date Div*
11/28/11 0.340
09/01/11 0.340
05/31/11 0.340
03/09/11 0.340
11/29/10 0.315
09/02/10 0.315
05/27/10 0.315
03/01/10 0.315
11/30/09 0.290
09/03/09 0.290
05/28/09 0.290
03/05/09 0.290
11/26/08 0.270
08/28/08 0.270
05/29/08 0.270
03/06/08 0.270
11/29/07 0.240
08/30/07 0.240
05/31/07 0.240
03/08/07 0.240
11/30/06 0.220
08/31/06 0.220
06/01/06 0.220
03/02/06 0.220
11/29/05 0.200
08/30/05 0.200
05/27/05 0.200
02/25/05 0.200
11/29/04 0.188
08/30/04 0.188
05/27/04 0.188
02/26/04 0.188
09/26/03 0.010
09/26/02 0.010
09/25/01 0.010
09/28/00 0.010
09/28/99 0.010
12/29/98 0.010
09/28/98 0.010
* Data may be adjusted for splits; we are not responsible for data errors; always verify data with the company.

WM+Dividend+History+Chart

According to the ETF Finder at ETF Channel, WM makes up 10.06% of the Environmental Services ETF (AMEX: EVX) which is trading higher by about 1.9% on the day Thursday.

See what other ETFs contain WM »
See what other stocks are held by EVX »

WM operates in the Waste Management sector, among companies like ABM Industries, Inc. (NYSE: ABM) which is up about 0.4% today, and Progressive Waste Solutions Ltd. (NYSE: BIN) trading higher by about 1.2%. Below is a three month price history chart comparing the stock performance of WM, versus ABM and BIN.

WM,ABM,BIN Relative Performance Chart

Yahoo! Finance: Waste Management Industry News

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