Why NYSE:RDN is a Top Pick for Dividend Investors.

Unearth the potential of RADIAN GROUP INC (NYSE:RDN) as a dividend stock recommended by our stock screening tool. NYSE:RDN maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Evaluating Dividend: NYSE:RDN

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 3.39, RDN pays a better dividend. On top of this RDN pays more dividend than 82.52% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.48, RDN pays a bit more dividend than the S&P500 average.
• The dividend of RDN is nicely growing with an annual growth rate of 140.15%!
• 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.

Evaluating Health: NYSE:RDN

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:RDN, the assigned 7 for health provides valuable insights:

• With a decent Altman-Z score value of 2.18, RDN is doing good in the industry, outperforming 75.73% of the companies in the same industry.
• With a decent Debt to FCF ratio value of 4.73, RDN is doing good in the industry, outperforming 65.05% of the companies in the same industry.
• 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.
• RDN has a Current ratio of 3.44. This is amongst the best in the industry. RDN outperforms 88.35% of its industry peers.
• RDN has a Quick Ratio of 3.44. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of RDN (3.44) is better than 89.32% of its industry peers.

Evaluating Profitability: 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 7 out of 10:

• With an excellent Return On Assets value of 8.44%, RDN belongs to the best of the industry, outperforming 88.35% of the companies in the same industry.
• RDN's Return On Equity of 15.00% is fine compared to the rest of the industry. RDN outperforms 76.70% of its industry peers.
• The Return On Invested Capital of RDN (9.56%) is better than 84.47% of its industry peers.
• The last Return On Invested Capital (9.56%) for RDN is above the 3 year average (8.61%), which is a sign of increasing profitability.
• The Profit Margin of RDN (50.66%) is better than 91.26% of its industry peers.
• RDN's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 72.88%, RDN belongs to the top of the industry, outperforming 92.23% of the companies in the same industry.
• In the last couple of years the Operating Margin of RDN has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Keep in mind

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.