Is NYSE:MDC suited for dividend investing?

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.

Dividend Examination 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 4.99%, which is a nice return.
• MDC's Dividend Yield is rather good when compared to the industry average which is at 3.43. MDC pays more dividend than 92.54% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.65, MDC pays a better dividend.
• The dividend of MDC is nicely growing with an annual growth rate of 20.09%!
• MDC has paid a dividend for at least 10 years, which is a reliable track record.
• MDC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.

Exploring NYSE:MDC's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:MDC was assigned a score of 7 for health:

• An Altman-Z score of 3.37 indicates that MDC is not in any danger for bankruptcy at the moment.
• MDC has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
• MDC has a better Debt to FCF ratio (1.41) than 65.67% of its industry peers.
• A Debt/Equity ratio of 0.50 indicates that MDC is not too dependend on debt financing.
• MDC has a Current Ratio of 7.74. This indicates that MDC is financially healthy and has no problem in meeting its short term obligations.
• MDC has a better Current ratio (7.74) than 86.57% of its industry peers.
• MDC has a Quick Ratio of 2.40. This indicates that MDC is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Quick ratio, with a value of 2.40, MDC belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.

How do we evaluate the Profitability for NYSE:MDC?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:MDC has earned a 6 out of 10:

• The last Return On Invested Capital (7.84%) for MDC is well below the 3 year average (12.36%), which needs to be investigated, but indicates that MDC had better years and this may not be a problem.
• MDC has a Profit Margin of 7.46%. This is in the better half of the industry: MDC outperforms 65.67% of its industry peers.
• MDC's Profit Margin has improved in the last couple of years.
• MDC has a better Operating Margin (10.89%) 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.

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

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.