Radian Group Inc (NYSE:RDN) has declared a dividend of $0.23 per share, set to be paid on December 12, with an ex-dividend date of November 24. Known for its consistent dividend growth since 2009, the company has achieved a status as a dividend achiever. The upcoming dividend is part of a pattern that has seen the company's dividends grow at an annual rate of roughly 330.90% over the last three years, though this rate shows a deceleration when expanded to five and ten-year periods.
Despite a slight decline in revenue trajectory, with an average annual decrease of about 1.30%, Radian Group maintains a trailing yield of approximately 3.45%, which is expected to increase slightly to around 3.55%. The company's payout ratio as of the end of September is notably low at just 0.23, suggesting a sustainable dividend policy with room for future growth even in less favorable economic times. This is supported by Radian's solid profitability rank, which reflects consistent net profits over the past decade.
Investors considering Radian Group for its dividend prospects should note that while the yield on cost over five years is projected to be around an impressive 765.57%, the firm's revenue and EPS growth have been lagging when compared internationally. The three-year EPS growth rate stands at about 14.90%, trailing behind nearly one-third of global peers. Additionally, with EBITDA growth over five years at around 14.60%, the company's performance indicators suggest caution for investors looking for income through dividends due to some underwhelming performance metrics compared to competitors globally.
InvestingPro Insights
In light of Radian Group Inc's (NYSE:RDN) recent dividend announcement, a closer look at the company's financial health and market performance through InvestingPro data and tips could provide investors with a more nuanced perspective. The company's market capitalization stands at $3.9 billion, and it boasts an attractive price-to-earnings (P/E) ratio of 6.49, which has slightly adjusted to 6.13 over the last twelve months as of Q3 2023. This indicates that the company is trading at a low earnings multiple, a point that is echoed by one of the InvestingPro Tips, which could be a sign of undervaluation.
InvestingPro Tips also highlight that Radian Group has a history of high returns on invested capital and has maintained dividend payments for an impressive 31 consecutive years. These factors, combined with a dividend yield of 3.54% as of late 2023 and a dividend growth of 12.5% over the last twelve months, reflect the company's commitment to shareholder returns. Analysts have revised their earnings upwards for the upcoming period, which could signal confidence in the company's future performance.
For investors looking for more in-depth analysis, the InvestingPro platform offers many additional tips—9 in total for Radian Group—providing a comprehensive investment outlook. Currently, InvestingPro subscriptions are available at a special Black Friday sale with discounts of up to 55%, making it an opportune time to access these valuable insights.
InvestingPro data also shows that the company's revenue growth was 1.23% over the last twelve months as of Q3 2023, with a quarterly growth rate of 5.86%, suggesting a positive trajectory in the company's operations. The revenue and profitability metrics, along with the InvestingPro Tips, can help investors make a more informed decision about the dividend achiever's potential as a long-term investment.
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