RADIAN GROUP INC (NYSE:RDN) – A Dividend Stock Worth Considering

RADIAN GROUP INC (NYSE:RDN) stands out as a potential candidate for dividend investors, according to our Best Dividend screen. The company combines a solid dividend profile with reasonable profitability and financial health, making it worth a closer look for income-focused portfolios.

Dividend Strengths

• Reliable Track Record: RDN has been paying dividends for at least 10 years without reductions, indicating a commitment to returning capital to shareholders.
• Growing Dividend: The company has increased its dividend at an impressive annualized rate of 151.22% over the past five years.
• Sustainable Payout Ratio: With a payout ratio of 25.42%, RDN retains enough earnings to reinvest in the business while maintaining dividend payments.
• Above-Average Yield: The current dividend yield of 2.94% is slightly higher than the S&P 500 average (2.43%) and competitive within its industry.

Profitability & Financial Health

• Strong Margins: RDN boasts an operating margin of 68.74%, outperforming 92% of its industry peers.
• Solid Returns: The company’s Return on Assets (6.81%) and Return on Equity (13.01%) are above industry averages.
• Healthy Liquidity: A current ratio of 3.59 suggests RDN can comfortably meet short-term obligations.
• Moderate Debt: A Debt-to-Equity ratio of 0.52 is in line with industry norms, indicating manageable leverage.

Valuation

RDN trades at a reasonable valuation, with a P/E ratio of 8.91—cheaper than 77% of its peers and well below the S&P 500 average (26.91).

For a deeper dive into RDN’s fundamentals, review the full report here.

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Disclaimer
This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.