Radian Group Inc (NYSE:RDN) – A Dividend Stock Worth Considering

Radian Group Inc (NYSE:RDN) was identified as a strong dividend candidate through our screening process. The company combines a solid dividend profile with reasonable profitability and financial health, making it an interesting option for income-focused investors.

Dividend Strengths

• Attractive Yield: RDN offers a dividend yield of 3.08%, which is above the S&P 500 average of 2.40%.
• Consistent Growth: The company has increased its dividend at an average annual rate of 151.22% over the past five years.
• Reliable Track Record: RDN has paid dividends for at least 10 years without reductions, indicating stability.
• Sustainable Payout: With a payout ratio of 25.42%, the dividend is well-covered by earnings.

Profitability & Financial Health

• Strong Margins: RDN’s Profit Margin (46.29%) and Operating Margin (68.74%) rank among the top in its industry.
• Solid Returns: The company’s Return on Assets (6.81%) and Return on Equity (13.01%) are competitive.
• Healthy Liquidity: A Current Ratio of 3.59 suggests RDN can comfortably meet short-term obligations.

Valuation

RDN trades at a P/E ratio of 8.30, below both the industry and S&P 500 averages, indicating potential undervaluation.

For a deeper analysis, review the full fundamental report on RDN.

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Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.