Radian Group Inc. (RDN) announced that its Board of Directors has authorized a quarterly dividend of $0.0025 per share.
The dividend will be payable on September 6, 2012 to shareholders of record at the close of business on August 27, 2012.
Earlier this month, Radian Group, a provider of private mortgage insurance, issued quarterly earnings data. The company reported a net loss for the quarter ended June 30, 2012, of $119.3 million, or $0.90 per share, missing the Street’s consensus estimate of ($0.54) by 36 cents.
The company said the miss included “combined losses from the change in fair value of derivatives and other financial instruments of $95.0 million. This compares to net income of $137.1 million, or $1.03 per share, which included combined gains from the change in fair value of derivatives and other financial instruments of $193.8 million, for the prior-year quarter. ” RDN’s book value per share (assets minus liabilities) at June 30, 2012, was $6.75 versus $6.81 currently.
“Our success in growing our MI business and managing our capital is evident, as we tripled Radian’s volume of new business and leveraged the capital support of our financial guaranty business to maintain a competitive risk-to-capital ratio of 21.0 to 1,” said Chief Executive Officer S.A. Ibrahim. “We are encouraged by the continued improvement in our legacy MI portfolio as our number of delinquent loans decline steadily.”
Radian Group’s CEO also said that “the improving composition of the company’s overall MI book helps position Radian for future success and a return to profitability.”
The annual yield on the dividend is 0.3%.
Shares of Radian, a co. which operates in three business segments: mortgage insurance, financial guaranty and financial services, traded up 1.60% on Wednesday, hitting $3.17 on 3.3 million volume.
Based on most recent quarter RDN has $5.3 billion in total cash versus a total debt of $7745 million. The co.’s current ratio stands at 6.69.
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