The Dividend Daily

FBR Capital Markets is out this morning with a positive take on shares of Radio Shack.

The firm is raising its EPS estimates and price target on Radio Shack’s announcement after the close Friday, , that it will be adding the Apple iPhone for the first time. The firm is excited about new senior management’s dedicated focus on wireless; smaller, more nimble store size; and finally, a trained, commissioned associate base.

The company is raising its 2010 EPS estimates from $1.75 to $2.00 per share.

The Bottom Line
We had removed shares of RSH from our “recommended” list back on Sept.17, when shares were trading at $18.72. The company has a 1.41% dividend yield, based on Friday’s closing stock price of $17.74. The stock has technical support in the $14-$16 price area. If the shares can firm up, we see overhead resistance around the $18 price level. We would remain on the sidelines for now.

Radio Shack (RSH) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.