Radian Announces Increase to Quarterly Dividend

Rhea-AI Summary

Radian Group Inc. (NYSE: RDN) has announced an increased quarterly dividend of $0.245 per share, a 9% rise from the previous dividend. The dividend will be payable on March 12, 2024, to stockholders of record as of February 26, 2024. This marks the fifth consecutive year of dividend increases, totaling a 96% increase over the past four years. CEO Rick Thornberry highlighted the company's financial strength and commitment to returning capital to stockholders.

Positive

• Radian Group Inc. (NYSE: RDN) has increased its quarterly dividend to $0.245 per share, a 9% rise from the previous dividend.
• The dividend will be paid on March 12, 2024, to stockholders of record as of February 26, 2024.
• This marks the fifth consecutive year of dividend increases for Radian Group Inc., with a total increase of 96% over the past four years.
• CEO Rick Thornberry emphasized the company's financial strength and dedication to returning capital to stockholders.
• Radian's regular dividend yield remains the highest in the private mortgage insurance industry.

Negative

• None.

Insights

Financial Analyst

The announcement by Radian Group Inc. regarding the hike in quarterly dividend payments by 9 percent is a significant indicator of the company's financial health and its commitment to shareholder returns. An increase in dividend payout is often a positive signal to the market, reflecting the company's confidence in its current and future earnings potential. Over a four-year period, the cumulative increase of 96 percent in dividend payments underscores a robust growth trajectory and a strong balance sheet.

From a financial analysis perspective, the key metrics to consider would be the dividend payout ratio and the dividend yield. The payout ratio helps determine the proportion of earnings allocated to dividends, which should ideally be sustainable over the long term without compromising the company's liquidity or investment in growth opportunities. The dividend yield, which the CEO claims to be the highest in the private mortgage insurance industry, is an important factor for income-focused investors and could influence the stock's attractiveness relative to its peers.

Market Research Analyst

Examining the competitive landscape of the private mortgage insurance industry, Radian's increase in dividend yield can be a strategic move to attract and retain investors, especially in a market where yield can be a differentiator. It's also indicative of management's confidence in the company's ability to generate cash flows. However, it is crucial to assess the industry's trends, such as interest rate changes, housing market dynamics and regulatory developments, which could affect the company's performance.

Investors often view consistent dividend increases as a hallmark of a stable and reliable company. Radian's consistent dividend growth over five years may position the company favorably in the eyes of long-term investors seeking predictable returns amidst market volatility. It will be important to monitor how this strategy impacts the company's market share and investor sentiment in the coming quarters.

Economist

From an economic standpoint, Radian's decision to increase dividends could be reflective of broader economic conditions. A stable or growing housing market, for instance, would support the performance of mortgage insurers. Inflationary pressures and interest rate hikes, on the other hand, could have an impact on mortgage rates and by extension, the demand for mortgage insurance.

It would be prudent to consider the opportunity cost associated with the increased dividend payments. The funds allocated for shareholder returns could alternatively be invested in business expansion or debt reduction. The optimal balance between rewarding shareholders and reinvesting in the company is critical for sustainable long-term growth.

WAYNE, Pa.--(BUSINESS WIRE)-- Radian Group Inc. (NYSE: RDN) announced today its plans to continue the return of capital to stockholders through an increased quarterly dividend. The company’s Board of Directors approved a quarterly dividend of $0.245 per share, an increase of 9 percent from the previous quarterly dividend. The dividend is payable on March 12, 2024, to stockholders of record as of February 26, 2024. This is the fifth consecutive year the company has increased the quarterly dividend, with a total increase of 96 percent over the past four years.

Chief Executive Officer Rick Thornberry commented, “I am pleased that Radian’s financial strength and flexibility support the continued return of capital to stockholders, including an increase to our dividend. Our regular dividend yield continues to be the highest in the private mortgage insurance industry.”

About Radian
Radian Group Inc. (NYSE: RDN) is ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, title, valuation, asset management and other real estate services. We are powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk. Visit radian.com and homegenius.com to learn more about how Radian and its pioneering homegenius platform are building a smarter future for mortgage and real estate services.

Forward-Looking Statements
All statements in this press release that address events, developments or results that we expect or anticipate may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as “anticipate,” “may,” “will,” “could,” “should,” “would,” “expect,” “intend,” “plan,” “goal,” “contemplate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “seek,” “strategy,” “future,” “likely” or the negative or other variations on these words and other similar expressions. These statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management’s current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment where new risks emerge from time to time and it is not possible for us to predict all risks that may affect us. Our ability and willingness to declare future dividends, as well as our ability to sustain growth in our businesses, are subject to risks and uncertainties including, without limitation: our ability to successfully execute and implement our capital plans and to maintain sufficient holding company liquidity to meet our liquidity needs; our ability to successfully execute and implement our business plans and strategies; our ability to maintain an adequate level of capital in our insurance subsidiaries to satisfy existing and future regulatory requirements; and changes in economic, market and political conditions that, among other things, may affect our capital resources, liquidity and financial resources. For more information regarding these risks and uncertainties as well as other additional risks that we face, you should refer to the Risk Factors detailed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022, and subsequent reports filed from time to time with the U.S. Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240214445475/en/

For Investors

John Damian – Phone: 215.231.1383

Email: john.damian@radian.com

For the Media

Rashi Iyer – Phone: 215.231.1167

Email: rashi.iyer@radian.com

Source: Radian Group Inc.

FAQ

What is the new quarterly dividend amount announced by Radian Group Inc. (NYSE: RDN)?

Radian Group Inc. (NYSE: RDN) announced an increased quarterly dividend of $0.245 per share.

When will the new dividend be payable to stockholders of Radian Group Inc. (NYSE: RDN)?

The dividend will be payable on March 12, 2024, to stockholders of record as of February 26, 2024.

How does the recent dividend increase compare to the previous dividend for Radian Group Inc. (NYSE: RDN)?

The recent dividend increase of $0.245 per share represents a 9% rise from the previous dividend.

How many consecutive years has Radian Group Inc. (NYSE: RDN) increased its dividend?

This marks the fifth consecutive year of dividend increases for Radian Group Inc.

What percentage increase has Radian Group Inc. (NYSE: RDN) achieved in its dividend over the past four years?

Radian Group Inc. has seen a total increase of 96% in its dividend over the past four years.

Who commented on the financial strength and capital return plans of Radian Group Inc. (NYSE: RDN)?

CEO Rick Thornberry highlighted the company's financial strength and commitment to returning capital to stockholders.

Which industry does Radian Group Inc. (NYSE: RDN) operate in with the highest regular dividend yield?

Radian Group Inc.'s regular dividend yield remains the highest in the private mortgage insurance industry.