Is NYSE:RDN suited for dividend investing?

Last update: Jul 16, 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.

Exploring NYSE:RDN's Dividend

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 3.54. RDN pays more dividend than 82.52% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, RDN pays a bit more dividend than the S&P500 average.
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
RDN pays out 24.73% of its income as dividend. This is a sustainable payout ratio.

How We Gauge Health for NYSE:RDN

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:RDN has received a 8 out of 10:

RDN has a Altman-Z score of 2.25. This is in the better half of the industry: RDN outperforms 74.76% 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.
With a decent Debt to FCF ratio value of 3.82, RDN is doing good in the industry, outperforming 65.05% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that RDN is not too dependend on debt financing.
The Debt to Equity ratio of RDN (0.39) is better than 60.19% of its industry peers.
A Current Ratio of 3.10 indicates that RDN has no problem at all paying its short term obligations.
The Current ratio of RDN (3.10) is better than 82.52% of its industry peers.
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 83.50% of its industry peers.

Profitability Examination for NYSE:RDN

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:RDN, the assigned 7 is noteworthy for profitability:

With an excellent Return On Assets value of 7.70%, RDN belongs to the best of the industry, outperforming 90.29% of the companies in the same industry.
RDN's Return On Equity of 13.46% is fine compared to the rest of the industry. RDN outperforms 62.14% of its industry peers.
RDN has a better Return On Invested Capital (8.98%) than 82.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RDN is above the industry average of 7.18%.
RDN has a Profit Margin of 47.74%. This is amongst the best in the industry. RDN outperforms 92.23% of its industry peers.
The Operating Margin of RDN (70.75%) is better than 92.23% of its industry peers.
In the last couple of years the Operating Margin of RDN has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

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

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.