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

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.

Evaluating Dividend: NYSE: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. NYSE:RDN has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.54, RDN pays a better dividend. On top of this RDN pays more dividend than 83.33% of the companies listed 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 149.14%, 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 24.19% of its income as dividend. This is a sustainable payout ratio.

How do we evaluate the Health for NYSE:RDN?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:RDN has achieved a 8 out of 10:

• RDN's Altman-Z score of 2.32 is amongst the best of the industry. RDN outperforms 80.39% of its industry peers.
• RDN has a debt to FCF ratio of 3.00. This is a good value and a sign of high solvency as RDN would need 3.00 years to pay back of all of its debts.
• The Debt to FCF ratio of RDN (3.00) is better than 73.53% of its industry peers.
• RDN has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
• RDN has a Current Ratio of 19.56. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 19.56, RDN belongs to the best of the industry, outperforming 99.02% of the companies in the same industry.
• A Quick Ratio of 19.56 indicates that RDN has no problem at all paying its short term obligations.
• RDN has a Quick ratio of 19.56. This is amongst the best in the industry. RDN outperforms 99.02% of its industry peers.

Profitability Analysis 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:

• Looking at the Return On Assets, with a value of 7.94%, RDN belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
• With a decent Return On Equity value of 13.71%, RDN is doing good in the industry, outperforming 65.69% of the companies in the same industry.
• RDN has a better Return On Invested Capital (9.13%) than 82.35% of its industry peers.
• The Profit Margin of RDN (48.51%) is better than 92.16% of its industry peers.
• RDN has a Operating Margin of 70.79%. This is amongst the best in the industry. RDN outperforms 93.14% of its industry peers.
• 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.

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.