Uncovering Dividend Opportunities with NYSE:RDN.

Last update: Aug 7, 2024

Our stock screener has singled out RADIAN GROUP INC (NYSE:RDN) as a promising choice for dividend investors. NYSE:RDN not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Understanding NYSE:RDN's 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:

Compared to an average industry Dividend Yield of 3.71, RDN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, 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 paid a dividend for at least 10 years, which is 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.

Assessing Health Metrics for NYSE:RDN

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 (2.26) is better than 79.81% 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 66.35% 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 has a Current ratio of 3.10. This is amongst the best in the industry. RDN outperforms 82.69% of its industry peers.
RDN has a Quick Ratio of 3.10. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
RDN has a better Quick ratio (3.10) than 83.65% of its industry peers.

Understanding NYSE:RDN's Profitability

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:

RDN has a Return On Assets of 7.70%. This is amongst the best in the industry. RDN outperforms 90.38% of its industry peers.
The Return On Equity of RDN (13.46%) is better than 62.50% of its industry peers.
RDN's Return On Invested Capital of 8.98% is amongst the best of the industry. RDN outperforms 82.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RDN is above the industry average of 7.14%.
Looking at the Profit Margin, with a value of 47.74%, RDN belongs to the top of the industry, outperforming 91.35% of the companies in the same industry.
Looking at the Operating Margin, with a value of 70.75%, RDN belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
RDN's Operating Margin has improved in the last couple of years.

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

Disclaimer

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.