Balancing Dividends and Fundamentals: The Case of RADIAN GROUP INC (NYSE:RDN).

Our stock screener has singled out RADIAN GROUP INC (NYSE:RDN) as a promising choice for dividend investors. RDN not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Assessing Dividend for 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. RDN earns a 7 out of 10:

• Compared to an average industry Dividend Yield of 4.28, RDN pays a bit more dividend than its industry peers.
• Compared to an average S&P500 Dividend Yield of 2.44, RDN pays a bit more dividend than the S&P500 average.
• The dividend of RDN is nicely growing with an annual growth rate of 151.22%!
• 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.

Deciphering RDN's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. RDN has earned a 6 out of 10:

• RDN's Altman-Z score of 1.95 is fine compared to the rest of the industry. RDN outperforms 75.25% of its industry peers.
• RDN has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
• RDN has a Current Ratio of 3.42. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 3.42, RDN belongs to the best of the industry, outperforming 88.12% 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.
• RDN has a Quick ratio of 3.42. This is amongst the best in the industry. RDN outperforms 89.11% of its industry peers.

Profitability Assessment of RDN

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. RDN has earned a 6 out of 10:

• RDN's Return On Assets of 6.98% is amongst the best of the industry. RDN outperforms 83.17% of its industry peers.
• RDN's Return On Equity of 13.07% is fine compared to the rest of the industry. RDN outperforms 61.39% of its industry peers.
• RDN's Return On Invested Capital of 8.25% is fine compared to the rest of the industry. RDN outperforms 79.21% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for RDN is above the industry average of 7.70%.
• RDN's Profit Margin of 46.85% is amongst the best of the industry. RDN outperforms 92.08% of its industry peers.
• With an excellent Operating Margin value of 70.27%, RDN belongs to the best of the industry, outperforming 93.07% of the companies in the same industry.
• RDN's Operating Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of RDN

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.