RDN Dividend Type Payments

Radian Group Inc. dividend

Although RDN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Radian Group Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Radian Group Inc. (RDN)
Bid Ask Last Change Volume P/E Market Cap
34.24 36.84 34.69 -0.13 1.1M 9.0 5.2B

RDN Dividend-Like Income Using Covered Calls

With RDN at 34.69, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 1.04 0.3
5% 1.73 0.5
10% 3.47 1.0

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On RDN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 37.00 0.45 47 1.0 0.16 (0.5%)
May 16 37.00 1.75 229 0.8 0.16 (0.5%)
5% Yield On RDN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 37.00 0.45 47 1.0 0.16 (0.5%)
May 16 37.00 1.75 229 0.8 0.16 (0.5%)
10% Yield On RDN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 37.00 0.45 47 1.0 0.16 (0.5%)

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Want more examples? RDIV Dividend | RDNT Dividend