Analyzing NYSE:MDC's Dividend Potential.

Last update: Sep 22, 2023

Take a closer look at MDC HOLDINGS INC (NYSE:MDC), a stock of interest to dividend investors uncovered by our stock screener. NYSE:MDC excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

A Closer Look at Dividend for NYSE:MDC

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:MDC earns a 8 out of 10:

With a Yearly Dividend Yield of 4.92%, MDC is a good candidate for dividend investing.
MDC's Dividend Yield is rather good when compared to the industry average which is at 33.31. MDC pays more dividend than 89.23% of the companies in the same industry.
MDC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
The dividend of MDC is nicely growing with an annual growth rate of 20.09%!
MDC has paid a dividend for at least 10 years, which is a reliable track record.
As MDC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
MDC pays out 36.43% of its income as dividend. This is a sustainable payout ratio.

Health Examination for NYSE:MDC

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:MDC has earned a 7 out of 10:

MDC has an Altman-Z score of 3.38. This indicates that MDC is financially healthy and has little risk of bankruptcy at the moment.
The Debt to FCF ratio of MDC is 1.19, which is an excellent value as it means it would take MDC, only 1.19 years of fcf income to pay off all of its debts.
MDC has a Debt to FCF ratio of 1.19. This is in the better half of the industry: MDC outperforms 76.92% of its industry peers.
Although MDC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
MDC has a Current Ratio of 7.24. This indicates that MDC is financially healthy and has no problem in meeting its short term obligations.
MDC's Current ratio of 7.24 is amongst the best of the industry. MDC outperforms 86.15% of its industry peers.
MDC has a Quick Ratio of 2.04. This indicates that MDC is financially healthy and has no problem in meeting its short term obligations.
MDC has a Quick ratio of 2.04. This is amongst the best in the industry. MDC outperforms 84.62% of its industry peers.

Evaluating Profitability: NYSE:MDC

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:MDC has earned a 6 out of 10:

MDC's Return On Assets of 7.32% is fine compared to the rest of the industry. MDC outperforms 61.54% of its industry peers.
MDC has a better Profit Margin (7.70%) than 63.08% of its industry peers.
In the last couple of years the Profit Margin of MDC has grown nicely.
MDC has a better Operating Margin (12.14%) than 66.15% of its industry peers.
In the last couple of years the Operating Margin of MDC has grown nicely.
MDC's Gross Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of MDC

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.