Is NYSE:MDC suited for dividend investing?

Unearth the potential of MDC HOLDINGS INC (NYSE:MDC) as a dividend stock recommended by our stock screening tool. NYSE:MDC maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Assessing Dividend for NYSE:MDC

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:MDC was assigned a score of 8 for dividend:

• With a Yearly Dividend Yield of 5.59%, MDC is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 3.40, MDC pays a better dividend. On top of this MDC pays more dividend than 95.52% 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 2.76.
• 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.

Health Analysis for NYSE:MDC

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:

• An Altman-Z score of 3.33 indicates that MDC is not in any danger for 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.
• With a decent Debt to FCF ratio value of 1.19, MDC is doing good in the industry, outperforming 74.63% of the companies in the same industry.
• 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.
• The Current ratio of MDC (7.24) is better than 85.07% 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.
• The Quick ratio of MDC (2.04) is better than 83.58% of its industry peers.

Evaluating Profitability: NYSE:MDC

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:

• MDC has a Return On Assets of 7.32%. This is in the better half of the industry: MDC outperforms 61.19% of its industry peers.
• With a decent Profit Margin value of 7.70%, MDC is doing good in the industry, outperforming 62.69% of the companies in the same industry.
• In the last couple of years the Profit Margin of MDC has grown nicely.
• MDC has a better Operating Margin (12.14%) than 67.16% of its industry peers.
• MDC's Operating Margin has improved in the last couple of years.
• MDC's Gross Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.