Is NYSE:RDN a Good Fit for Dividend Investing?

Last update: Nov 9, 2023

Our stock screening tool has identified RADIAN GROUP INC (NYSE:RDN) as a strong dividend contender with robust fundamentals. NYSE:RDN exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

ChartMill's Evaluation of Dividend

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:RDN scores a 7 out of 10:

Compared to an average industry Dividend Yield of 3.95, RDN pays a better dividend. On top of this RDN pays more dividend than 81.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.70, RDN pays a bit more dividend than the S&P500 average.
On average, the dividend of RDN grows each year by 140.15%, which is quite nice.
RDN has been paying a dividend for at least 10 years, so it has a reliable track record.
RDN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
20.97% of the earnings are spent on dividend by RDN. This is a low number and sustainable payout ratio.

Health Examination for NYSE:RDN

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:RDN, the assigned 7 reflects its health status:

Looking at the Altman-Z score, with a value of 2.18, RDN is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
Looking at the Debt to FCF ratio, with a value of 4.19, RDN is in the better half of the industry, outperforming 69.00% of the companies in the same industry.
RDN has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
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.
With an excellent Current ratio value of 3.15, RDN belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
A Quick Ratio of 3.15 indicates that RDN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.15, RDN belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.

Profitability Analysis for NYSE:RDN

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:RDN was assigned a score of 8 for profitability:

RDN's Return On Assets of 9.09% is amongst the best of the industry. RDN outperforms 88.00% of its industry peers.
RDN's Return On Equity of 15.93% is amongst the best of the industry. RDN outperforms 81.00% of its industry peers.
With an excellent Return On Invested Capital value of 10.21%, RDN belongs to the best of the industry, outperforming 86.00% 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 94.00% of its industry peers.
RDN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 78.22%, RDN belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
In the last couple of years the Operating Margin of RDN has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of RDN contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.