Why NYSE:RDN qualifies as a good dividend investing stock.

Consider RADIAN GROUP INC (NYSE:RDN) as a top pick for dividend investors, identified by our stock screening tool. NYSE:RDN shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Exploring NYSE:RDN's Dividend

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:RDN has achieved a 7 out of 10:

• RDN's Dividend Yield is rather good when compared to the industry average which is at 4.17. RDN pays more dividend than 81.19% of the companies in the same industry.
• RDN's Dividend Yield is a higher than the S&P500 average which is at 2.72.
• The dividend of RDN is nicely growing with an annual growth rate of 140.15%!
• RDN has been paying a dividend for at least 10 years, so it has a reliable track record.
• As RDN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
• 20.97% of the earnings are spent on dividend by RDN. This is a low number and sustainable payout ratio.

Looking at the Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:RDN has achieved a 7 out of 10:

• The Altman-Z score of RDN (2.18) is better than 78.22% of its industry peers.
• RDN's Debt to FCF ratio of 4.19 is fine compared to the rest of the industry. RDN outperforms 68.32% of its industry peers.
• A Debt/Equity ratio of 0.38 indicates that RDN is not too dependend on debt financing.
• RDN has a Current Ratio of 3.15. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
• RDN's Current ratio of 3.15 is amongst the best of the industry. RDN outperforms 84.16% of its industry peers.
• RDN has a Quick Ratio of 3.15. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
• RDN has a Quick ratio of 3.15. This is amongst the best in the industry. RDN outperforms 85.15% of its industry peers.

Profitability Analysis for NYSE:RDN

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:RDN scores a 8 out of 10:

• With an excellent Return On Assets value of 9.09%, RDN belongs to the best of the industry, outperforming 88.12% of the companies in the same industry.
• RDN has a better Return On Equity (15.93%) than 81.19% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 10.21%, RDN belongs to the top of the industry, outperforming 87.13% of the companies in the same industry.
• The 3 year average ROIC (8.61%) for RDN is below the current ROIC(10.21%), indicating increased profibility in the last year.
• The Profit Margin of RDN (54.83%) is better than 94.06% of its industry peers.
• RDN's Profit Margin has improved in the last couple of years.
• RDN has a Operating Margin of 78.22%. This is amongst the best in the industry. RDN outperforms 95.05% of its industry peers.
• In the last couple of years the Operating Margin of RDN has grown nicely.

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For an up to date full fundamental analysis you can check the fundamental report of RDN

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.