Is NYSE:MDC a Good Fit for Dividend Investing?

Last update: Sep 28, 2023

Our stock screening tool has identified MDC HOLDINGS INC (NYSE:MDC) as a strong dividend contender with robust fundamentals. NYSE:MDC exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Looking at the Dividend

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:MDC scores 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.

Health Analysis for NYSE:MDC

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MDC has achieved a 8 out of 10:

An Altman-Z score of 3.37 indicates that MDC is not in any danger for bankruptcy at the moment.
MDC has a better Altman-Z score (3.37) than 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.
With a decent Debt to FCF ratio value of 1.19, MDC is doing good in the industry, outperforming 77.61% of the companies in the same industry.
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.
With an excellent Current ratio value of 7.24, MDC belongs to the best of the industry, outperforming 85.07% of the companies in the same industry.
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 employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:MDC, the assigned 6 is noteworthy for profitability:

MDC has a better Return On Assets (7.32%) 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.
With a decent Operating Margin value of 12.14%, MDC is doing good in 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.
MDC's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.