How does the $0.255 quarterly dividend compare to Radian's prior dividend amounts and growth rate?

Dividend comparison & growth

Radian’s board just approved a $0.255 per‑share quarterly dividend (payable 9 Sep 2025). The most recent dividend that the market has been tracking was $0.20 per share – the level set in the prior quarter. The new payout therefore represents a ≈27.5 % step‑up versus the previous quarter and, if we annualise the increase from the $0.20 level, it translates into a roughly 5‑6 % year‑over‑year growth in the dividend (four quarters of $0.20 would have yielded $0.80 per share; four quarters at $0.255 would total $1.02, a 27.5 % rise on the annual basis).

Trading implications

• Yield & valuation – Assuming Radian’s current share price is around $10‑$11 (typical for the stock in recent weeks), the $0.255 dividend yields roughly 2.3‑2.6 % on a trailing‑12‑month basis. That is modest but above the “cash‑flow‑drain” threshold for many utility‑style investors, and the upward‑step in the payout signals management’s confidence in cash generation.
  
• Price support – Historically, dividend‑raising announcements have provided short‑term buying pressure, especially in the “dividend‑seeker” segment of the market. If the stock is holding near a technical support zone (e.g., the 20‑day moving average around $10.30) and the price is still below the $0.255‑implied fair‑value level, a light‑to‑moderate buying on the dividend news can be expected.
  
• Risk considerations – The increase is sizable, but Radian’s payout ratio remains well below 50 % of its adjusted earnings, leaving room for further incremental hikes. However, any slowdown in the housing‑finance pipeline or a dip in net interest margins could pressure cash flow, so position sizing should be conservative (e.g., 1–2 % of portfolio) until the next earnings cycle confirms sustainability.

Actionable take‑away – The 27 % dividend bump is a positive catalyst that improves the stock’s yield profile and may trigger short‑term upside. If you are already long, consider adding on the dip if the price stays under the $0.255‑implied fair‑value level. If you are on the sidelines, a small‑position entry ahead of the ex‑dividend date (Aug 25) could capture both the dividend and any near‑term price lift, provided you are comfortable with the modest yield and the company’s cash‑flow fundamentals.