Exploring NYSE:RDN's dividend characteristics.

Last update: May 7, 2024

RADIAN GROUP INC (NYSE:RDN) has caught the attention of dividend investors as a stock worth considering. NYSE:RDN excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Analyzing Dividend Metrics

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:RDN has been awarded a 7 for its dividend quality:

Compared to an average industry Dividend Yield of 3.56, RDN pays a better dividend. On top of this RDN pays more dividend than 83.33% of the companies listed in the same industry.
RDN's Dividend Yield is a higher than the S&P500 average which is at 2.40.
The dividend of RDN is nicely growing with an annual growth rate of 149.14%!
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.
24.19% of the earnings are spent on dividend by RDN. This is a low number and sustainable payout ratio.

Health Insights: NYSE:RDN

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:RDN, the assigned 8 for health provides valuable insights:

RDN's Altman-Z score of 2.35 is amongst the best of the industry. RDN outperforms 82.35% of its industry peers.
RDN has a debt to FCF ratio of 3.00. This is a good value and a sign of high solvency as RDN would need 3.00 years to pay back of all of its debts.
The Debt to FCF ratio of RDN (3.00) is better than 71.57% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that RDN is not too dependend on debt financing.
A Current Ratio of 19.56 indicates that RDN has no problem at all paying its short term obligations.
RDN has a better Current ratio (19.56) than 99.02% of its industry peers.
A Quick Ratio of 19.56 indicates that RDN has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 19.56, RDN belongs to the best of the industry, outperforming 99.02% of the companies in the same industry.

A Closer Look at 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 7:

Looking at the Return On Assets, with a value of 7.94%, RDN belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
With a decent Return On Equity value of 13.71%, RDN is doing good in the industry, outperforming 64.71% of the companies in the same industry.
RDN has a better Return On Invested Capital (9.13%) than 82.35% of its industry peers.
The Profit Margin of RDN (48.51%) is better than 92.16% of its industry peers.
The Operating Margin of RDN (70.79%) is better than 92.16% of its industry peers.
In the last couple of years the Operating Margin of RDN has grown nicely.

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

Keep in mind

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.