Analyzing NYSE:RDN's Dividend Potential.

Our stock screening tool has identified RADIAN GROUP INC (NYSE:RDN) as a strong dividend contender with robust fundamentals. NYSE:RDN exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Unpacking NYSE:RDN's Dividend Rating

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 3.38. RDN pays more dividend than 82.18% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.45, RDN pays a bit more dividend than the S&P500 average.
• On average, the dividend of RDN grows each year by 140.15%, which is quite nice.
• RDN has paid a dividend for at least 10 years, which is a reliable track record.
• As RDN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
• RDN pays out 22.92% of its income as dividend. This is a sustainable payout ratio.

Health Analysis for NYSE:RDN

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:RDN has earned a 7 out of 10:

• RDN has a better Altman-Z score (2.18) than 77.23% of its industry peers.
• RDN has a Debt to FCF ratio of 4.73. This is in the better half of the industry: RDN outperforms 64.36% of its industry peers.
• A Debt/Equity ratio of 0.40 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.
• With an excellent Current ratio value of 3.44, RDN belongs to the best of the industry, outperforming 88.12% 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.
• The Quick ratio of RDN (3.44) is better than 89.11% of its industry peers.

Profitability Insights: NYSE: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. NYSE:RDN scores a 8 out of 10:

• The Return On Assets of RDN (8.44%) is better than 88.12% of its industry peers.
• With a decent Return On Equity value of 15.00%, RDN is doing good in the industry, outperforming 76.24% of the companies in the same industry.
• The Return On Invested Capital of RDN (9.56%) is better than 84.16% of its industry peers.
• The 3 year average ROIC (8.61%) for RDN is below the current ROIC(9.56%), indicating increased profibility in the last year.
• RDN has a Profit Margin of 50.66%. This is amongst the best in the industry. RDN outperforms 91.09% of its industry peers.
• In the last couple of years the Profit Margin of RDN has grown nicely.
• With an excellent Operating Margin value of 72.88%, RDN belongs to the best of the industry, outperforming 92.08% of the companies in the same industry.
• 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.

Check the latest full fundamental report of RDN for a complete fundamental analysis.

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.