Why the dividend investor may take a look at RADIAN GROUP INC (NYSE:RDN).

RADIAN GROUP INC (NYSE:RDN) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. RDN demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Dividend Assessment of RDN

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. RDN has received a 7 out of 10:

• RDN's Dividend Yield is rather good when compared to the industry average which is at 4.18. RDN pays more dividend than 82.18% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.39, RDN pays a bit more dividend than the S&P500 average.
• On average, the dividend of RDN grows each year by 151.22%, 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.
• RDN pays out 25.14% of its income as dividend. This is a sustainable payout ratio.

Evaluating Health: RDN

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. RDN scores a 6 out of 10:

• With a decent Altman-Z score value of 1.95, RDN is doing good in the industry, outperforming 71.29% of the companies in the same industry.
• A Debt/Equity ratio of 0.50 indicates that RDN is not too dependend on debt financing.
• A Current Ratio of 3.42 indicates that RDN has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 3.42, RDN belongs to the top of the industry, outperforming 87.13% of the companies in the same industry.
• RDN has a Quick Ratio of 3.42. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 3.42, RDN belongs to the best of the industry, outperforming 88.12% of the companies in the same industry.

Evaluating Profitability: RDN

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. RDN scores a 6 out of 10:

• RDN's Return On Assets of 6.98% is amongst the best of the industry. RDN outperforms 82.18% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 8.25%, RDN is in the better half of the industry, outperforming 79.21% of the companies in the same industry.
• RDN had an Average Return On Invested Capital over the past 3 years of 9.72%. This is above the industry average of 7.58%.
• With an excellent Profit Margin value of 46.85%, RDN belongs to the best of the industry, outperforming 92.08% of the companies in the same industry.
• RDN has a Operating Margin of 70.27%. This is amongst the best in the industry. RDN outperforms 93.07% of its industry peers.
• In the last couple of years the Operating Margin of RDN has grown nicely.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.