Why NYSE:RDN provides a good dividend, while having solid fundamentals.

Discover RADIAN GROUP INC (NYSE:RDN)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:RDN showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Assessing Dividend for NYSE:RDN

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:RDN was assigned a score of 7 for dividend:

• RDN's Dividend Yield is rather good when compared to the industry average which is at 3.92. RDN pays more dividend than 83.17% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.63, RDN pays a bit more dividend than the S&P500 average.
• The dividend of RDN is nicely growing with an annual growth rate of 140.15%!
• RDN has paid a dividend for at least 10 years, which is a reliable track record.
• As RDN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
• RDN pays out 22.92% of its income as dividend. This is a sustainable payout ratio.

Analyzing Health Metrics

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:RDN has earned a 7 out of 10:

• RDN has a better Altman-Z score (2.11) than 77.23% of its industry peers.
• RDN has a Debt to FCF ratio of 4.73. This is in the better half of the industry: RDN outperforms 65.35% of its industry peers.
• RDN has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 3.44 indicates that RDN has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 3.44, RDN belongs to the best of the industry, outperforming 90.10% of the companies in the same industry.
• RDN has a Quick Ratio of 3.44. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
• RDN has a better Quick ratio (3.44) than 91.09% of its industry peers.

Assessing Profitability for NYSE:RDN

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:RDN has achieved a 8:

• RDN's Return On Assets of 8.44% is amongst the best of the industry. RDN outperforms 89.11% of its industry peers.
• RDN has a better Return On Equity (15.00%) than 78.22% of its industry peers.
• The Return On Invested Capital of RDN (9.56%) is better than 85.15% of its industry peers.
• The last Return On Invested Capital (9.56%) for RDN is above the 3 year average (8.61%), which is a sign of increasing profitability.
• The Profit Margin of RDN (50.66%) is better than 92.08% of its industry peers.
• RDN's Profit Margin has improved in the last couple of years.
• RDN has a Operating Margin of 72.88%. This is amongst the best in the industry. RDN outperforms 93.07% of its industry peers.
• RDN's Operating Margin has improved in the last couple of years.

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Check the latest full fundamental report of RDN for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.