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Uncovering Dividend Opportunities with NYSE:MDC.

By Mill Chart

Last update: Oct 6, 2023

MDC HOLDINGS INC (NYSE:MDC) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:MDC demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Dividend Analysis 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:

  • MDC has a Yearly Dividend Yield of 5.26%, which is a nice return.
  • MDC's Dividend Yield is rather good when compared to the industry average which is at 3.24. MDC pays more dividend than 95.45% of the companies in the same industry.
  • MDC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.68.
  • On average, the dividend of MDC grows each year by 20.09%, which is quite nice.
  • MDC has been paying a dividend for at least 10 years, so it has 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.

Understanding NYSE:MDC's Health Score

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:MDC, the assigned 7 reflects its health status:

  • MDC has an Altman-Z score of 3.33. This indicates that MDC is financially healthy and has little risk of bankruptcy at the moment.
  • 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.
  • MDC has a better Debt to FCF ratio (1.19) than 75.76% 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.
  • A Current Ratio of 7.24 indicates that MDC has no problem at all paying its short term obligations.
  • MDC has a better Current ratio (7.24) than 84.85% of its industry peers.
  • A Quick Ratio of 2.04 indicates that MDC has no problem at all paying its short term obligations.
  • With an excellent Quick ratio value of 2.04, MDC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.

Profitability Examination for NYSE:MDC

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:MDC, the assigned 6 is a significant indicator of profitability:

  • Looking at the Return On Assets, with a value of 7.32%, MDC is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
  • The Profit Margin of MDC (7.70%) is better than 62.12% of its industry peers.
  • In the last couple of years the Profit Margin of MDC has grown nicely.
  • With a decent Operating Margin value of 12.14%, MDC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • MDC's Operating Margin has improved in the last couple of years.
  • In the last couple of years the Gross Margin of MDC has grown nicely.

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

Our latest full fundamental report of MDC contains the most current fundamental analsysis.

Keep in mind

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.

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