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

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.

Dividend Analysis for NYSE:RDN

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 3.68, RDN pays a better dividend. On top of this RDN pays more dividend than 81.37% of the companies listed in the same industry.
• RDN's Dividend Yield is a higher than the S&P500 average which is at 2.38.
• On average, the dividend of RDN grows each year by 149.14%, 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 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.

Looking at the Health

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 8 out of 10:

• The Altman-Z score of RDN (2.19) is better than 74.51% of its industry peers.
• RDN has a debt to FCF ratio of 3.82. This is a good value and a sign of high solvency as RDN would need 3.82 years to pay back of all of its debts.
• The Debt to FCF ratio of RDN (3.82) is better than 64.71% of its industry peers.
• A Debt/Equity ratio of 0.39 indicates that RDN is not too dependend on debt financing.
• A Current Ratio of 3.10 indicates that RDN has no problem at all paying its short term obligations.
• RDN's Current ratio of 3.10 is amongst the best of the industry. RDN outperforms 82.35% of its industry peers.
• A Quick Ratio of 3.10 indicates that RDN has no problem at all paying its short term obligations.
• RDN's Quick ratio of 3.10 is amongst the best of the industry. RDN outperforms 83.33% of its industry peers.

Understanding NYSE:RDN's Profitability

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:

• The Return On Assets of RDN (7.70%) is better than 90.20% of its industry peers.
• The Return On Equity of RDN (13.46%) is better than 61.76% of its industry peers.
• RDN has a better Return On Invested Capital (8.98%) than 82.35% 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 7.24%.
• RDN has a Profit Margin of 47.74%. This is amongst the best in the industry. RDN outperforms 92.16% of its industry peers.
• The Operating Margin of RDN (70.75%) is better than 92.16% of its industry peers.
• In the last couple of years the Operating Margin of RDN has grown nicely.

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.