This Top Dividend Stock Pays 3.8% and Is Now Oversold

Are you looking for a top dividend stock to buy on the dip right now? One of the best options for you to consider is Fortis Inc (TSX:FTS)(NYSE:FTS).

The utility stock has been falling of late and its shares have now even dipped into oversold territory, with a Relative Strength Index (RSI) value of less than 30. RSI is an indicator which tells you when there has been an excess of selling (or buying) pressure on a stock. When RSI fall below 30, a stock is considered oversold, and thus, could be a buying opportunity for investors.

Fortis stock was trading at around $57 on the TSX last week, the lowest it has been since December 2021. It's not a 52-week low but it could still be a solid pickup for dividend investors.

With the drop in price, the stock is yielding 3.8% annually. Fortis is one of the safer stocks investors can hang on to for the long haul as it averages a beta of 0.15, which suggests there isn't normally much volatility with the stock; this recent price movement is a bit unusual for Fortis. It could be due to investors simply moving more money out of the stock market as a whole, given the downturn the markets are in right now.

Overall, Fortis is a solid stock that you can buy and forget about. Not only is it consistently profitable but the company regularly increases its dividend payments each year. That means that over time, you will be collecting more of your initial investment back in the form of dividend income, which makes it an even better income stock to own than ones with similar yields.