Why the dividend investor may take a look at NYSE:RDN.

Last update: Aug 28, 2024

Discover RADIAN GROUP INC (NYSE:RDN)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:RDN showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Looking at the Dividend

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 3.56, RDN pays a bit more dividend than its industry peers.
RDN's Dividend Yield is a higher than the S&P500 average which is at 2.27.
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.
24.65% of the earnings are spent on dividend by RDN. This is a low number and sustainable payout ratio.

Assessing Health Metrics for 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 7 for health:

With a decent Altman-Z score value of 2.19, RDN is doing good in the industry, outperforming 77.67% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that RDN is not too dependend on debt financing.
A Current Ratio of 3.44 indicates that RDN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.44, RDN belongs to the top of the industry, outperforming 86.41% of the companies in the same industry.
A Quick Ratio of 3.44 indicates that RDN has no problem at all paying its short term obligations.
RDN's Quick ratio of 3.44 is amongst the best of the industry. RDN outperforms 87.38% of its industry peers.

A Closer Look at Profitability for NYSE:RDN

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:RDN was assigned a score of 7 for profitability:

The Return On Assets of RDN (7.42%) is better than 89.32% of its industry peers.
With a decent Return On Equity value of 13.46%, RDN is doing good in the industry, outperforming 63.11% of the companies in the same industry.
RDN's Return On Invested Capital of 8.67% is amongst the best of the industry. RDN outperforms 81.55% 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 7.28%.
RDN's Profit Margin of 47.05% is amongst the best of the industry. RDN outperforms 91.26% of its industry peers.
The Operating Margin of RDN (69.84%) is better than 93.20% of its industry peers.
RDN's Operating Margin has improved in the last couple of years.

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

Disclaimer

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.