Why the dividend investor may take a look at NYSE:MDC.

Last update: Oct 31, 2023

MDC HOLDINGS INC (NYSE:MDC) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:MDC scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Dividend Assessment of 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 5.97%, MDC is a good candidate for dividend investing.
MDC's Dividend Yield is rather good when compared to the industry average which is at 3.61. MDC pays more dividend than 94.03% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.80, MDC pays a better dividend.
The dividend of MDC is nicely growing with an annual growth rate of 20.09%!
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.
36.43% of the earnings are spent on dividend by MDC. This is a low number and sustainable payout ratio.

Exploring NYSE:MDC's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, 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 3.29. 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.
With a decent Debt to FCF ratio value of 1.19, MDC is doing good in the industry, outperforming 73.13% 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.
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.
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.
With an excellent Quick ratio value of 2.04, MDC belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.

Profitability Analysis 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:

With a decent Return On Assets value of 7.32%, MDC is doing good in the industry, outperforming 62.69% of the companies in the same industry.
MDC's Return On Invested Capital of 9.52% is fine compared to the rest of the industry. MDC outperforms 61.19% of its industry peers.
The Profit Margin of MDC (7.70%) is better than 64.18% of its industry peers.
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.

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.

Disclaimer

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.