Analyzing NYSE:MDC's Dividend Potential.

Last update: Sep 27, 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.

Unpacking NYSE:MDC's Dividend Rating

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:MDC has achieved a 8 out of 10:

MDC has a Yearly Dividend Yield of 5.31%, which is a nice return.
Compared to an average industry Dividend Yield of 3.17, MDC pays a better dividend. On top of this MDC pays more dividend than 97.01% of the companies listed in the same industry.
MDC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.64.
On average, the dividend of MDC grows each year by 20.09%, which is quite nice.
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.
36.43% of the earnings are spent on dividend by MDC. This is a low number and sustainable payout ratio.

Evaluating Health: NYSE:MDC

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MDC has received a 8 out of 10:

MDC has an Altman-Z score of 3.37. This indicates that MDC is financially healthy and has little risk of bankruptcy at the moment.
MDC has a Altman-Z score of 3.37. This is in the better half of the industry: MDC outperforms 61.19% of its industry peers.
MDC has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
The Debt to FCF ratio of MDC (1.19) is better than 77.61% of its industry peers.
Even though the debt/equity ratio score it not favorable for MDC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
A Current Ratio of 7.24 indicates that MDC has no problem at all paying its short term obligations.
The Current ratio of MDC (7.24) is better than 85.07% of its industry peers.
A Quick Ratio of 2.04 indicates that MDC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.04, MDC belongs to the top of the industry, outperforming 83.58% of the companies in the same industry.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:MDC scores a 6 out of 10:

The Return On Assets of MDC (7.32%) is better than 61.19% of its industry peers.
Looking at the Profit Margin, with a value of 7.70%, MDC is in the better half of the industry, outperforming 62.69% of the companies in the same industry.
MDC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.14%, MDC is in the better half of the industry, outperforming 67.16% of the companies in the same industry.
In the last couple of years the Operating Margin of MDC has grown nicely.
In the last couple of years the Gross Margin of MDC has grown nicely.

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Check the latest full fundamental report of MDC for a complete fundamental analysis.

Disclaimer

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.