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

Last update: Dec 26, 2023

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.

How do we evaluate the Dividend for NYSE:RDN?

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:RDN has received a 7 out of 10:

RDN's Dividend Yield is rather good when compared to the industry average which is at 3.28. RDN pays more dividend than 82.35% of the companies in the same industry.
RDN's Dividend Yield is a higher than the S&P500 average which is at 2.46.
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.
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.

Exploring NYSE:RDN's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:RDN scores a 7 out of 10:

RDN's Altman-Z score of 2.19 is fine compared to the rest of the industry. RDN outperforms 76.47% of its industry peers.
The Debt to FCF ratio of RDN (4.73) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that RDN is not too dependend on debt financing.
RDN has a Current 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 Current ratio (3.44) than 89.22% of its industry peers.
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's Quick ratio of 3.44 is amongst the best of the industry. RDN outperforms 90.20% of its industry peers.

Profitability Assessment of NYSE:RDN

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:RDN, the assigned 8 is a significant indicator of profitability:

With an excellent Return On Assets value of 8.44%, RDN belongs to the best of the industry, outperforming 89.22% of the companies in the same industry.
RDN's Return On Equity of 15.00% is fine compared to the rest of the industry. RDN outperforms 77.45% of its industry peers.
RDN has a Return On Invested Capital of 9.56%. This is amongst the best in the industry. RDN outperforms 85.29% of its industry peers.
The 3 year average ROIC (8.61%) for RDN is below the current ROIC(9.56%), indicating increased profibility in the last year.
RDN has a Profit Margin of 50.66%. This is amongst the best in the industry. RDN outperforms 92.16% of its industry peers.
In the last couple of years the Profit Margin of RDN has grown nicely.
The Operating Margin of RDN (72.88%) is better than 93.14% of its industry peers.
RDN's Operating Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

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.