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

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.

Assessing Dividend for NYSE:RDN

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:RDN has been awarded a 7 for its dividend quality:

• Compared to an average industry Dividend Yield of 3.84, RDN pays a better dividend. On top of this RDN pays more dividend than 81.37% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.27, RDN pays a bit more dividend than the S&P500 average.
• The dividend of RDN is nicely growing with an annual growth rate of 149.14%!
• 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 25.07% of its income as dividend. This is a sustainable payout ratio.

Health Examination 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 5 out of 10:

• A Debt/Equity ratio of 0.42 indicates that RDN is not too dependend on debt financing.
• A Current Ratio of 19.56 indicates that RDN has no problem at all paying 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.
• RDN has a Quick Ratio of 19.56. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 19.56, RDN belongs to the best of the industry, outperforming 99.02% of the companies in the same industry.

Understanding NYSE:RDN's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:RDN, the assigned 5 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 7.11%, RDN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
• RDN has a better Profit Margin (45.96%) than 92.16% of its industry peers.
• Looking at the Operating Margin, with a value of 69.54%, RDN belongs to the top of the industry, outperforming 93.14% of the companies in the same industry.
• In the last couple of years the Operating Margin of RDN has grown nicely.

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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.