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

Our stock screener has spotted RADIAN GROUP INC (NYSE:RDN) as a good dividend stock with solid fundamentals. NYSE:RDN shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Looking at the Dividend

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:RDN earns a 7 out of 10:

• RDN's Dividend Yield is rather good when compared to the industry average which is at 3.53. RDN pays more dividend than 83.17% of the companies in the same industry.
• RDN's Dividend Yield is a higher than the S&P500 average which is at 2.39.
• 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.
• RDN has not decreased their dividend for at least 10 years, which is a reliable track record.
• 24.73% of the earnings are spent on dividend by RDN. This is a low number and sustainable payout ratio.

Health Assessment of NYSE:RDN

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

• RDN's Altman-Z score of 2.19 is fine compared to the rest of the industry. RDN outperforms 74.26% of its industry peers.
• The Debt to FCF ratio of RDN is 3.82, which is a good value as it means it would take RDN, 3.82 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.82, RDN is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
• RDN has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 3.10 indicates that RDN has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 3.10, RDN belongs to the top of the industry, outperforming 82.18% of the companies in the same industry.
• A Quick Ratio of 3.10 indicates that RDN has no problem at all paying its short term obligations.
• RDN has a Quick ratio of 3.10. This is amongst the best in the industry. RDN outperforms 83.17% of its industry peers.

Exploring NYSE:RDN's Profitability

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 7 is a significant indicator of profitability:

• RDN has a Return On Assets of 7.70%. This is amongst the best in the industry. RDN outperforms 90.10% of its industry peers.
• Looking at the Return On Equity, with a value of 13.46%, RDN is in the better half of the industry, outperforming 62.38% of the companies in the same industry.
• RDN's Return On Invested Capital of 8.98% is amongst the best of the industry. RDN outperforms 82.18% of its industry peers.
• RDN had an Average Return On Invested Capital over the past 3 years of 9.81%. This is above the industry average of 7.32%.
• RDN has a Profit Margin of 47.74%. This is amongst the best in the industry. RDN outperforms 92.08% of its industry peers.
• RDN's Operating Margin of 70.75% is amongst the best of the industry. RDN outperforms 92.08% of its industry peers.
• RDN's Operating Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Keep in mind

This article should in no way be interpreted as advice. 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.