Balancing Dividends and Fundamentals: The Case of NYSE:MDC.

Last update: Jan 19, 2024

Our stock screener has singled out MDC HOLDINGS INC (NYSE:MDC) as a promising choice for dividend investors. NYSE:MDC not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Dividend Examination for NYSE:MDC

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:MDC has been awarded a 8 for its dividend quality:

MDC has a Yearly Dividend Yield of 4.00%, which is a nice return.
MDC's Dividend Yield is rather good when compared to the industry average which is at 3.28. MDC pays more dividend than 91.04% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, MDC pays a better dividend.
On average, the dividend of MDC grows each year by 20.08%, which is quite nice.
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.

Health Examination for NYSE:MDC

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:MDC, the assigned 7 for health provides valuable insights:

MDC has an Altman-Z score of 3.74. This indicates that MDC is financially healthy and has little risk of bankruptcy at the moment.
The Debt to FCF ratio of MDC is 1.41, which is an excellent value as it means it would take MDC, only 1.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.41, MDC is in the better half of the industry, outperforming 62.69% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that MDC is not too dependend on debt financing.
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 7.74. This indicates that MDC is financially healthy and has no problem in meeting its short term obligations.
MDC's Current ratio of 7.74 is amongst the best of the industry. MDC outperforms 88.06% of its industry peers.
A Quick Ratio of 2.40 indicates that MDC has no problem at all paying its short term obligations.
MDC has a better Quick ratio (2.40) than 88.06% of its industry peers.

Profitability Insights: NYSE:MDC

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:MDC was assigned a score of 6 for profitability:

MDC has a Return On Assets of 6.55%. This is in the better half of the industry: MDC outperforms 61.19% of its industry peers.
MDC had an Average Return On Invested Capital over the past 3 years of 12.36%. This is above the industry average of 10.33%.
The 3 year average ROIC (12.36%) for MDC is well above the current ROIC(7.84%). The reason for the recent decline needs to be investigated.
Looking at the Profit Margin, with a value of 7.46%, MDC is in the better half of the industry, outperforming 64.18% of the companies in the same industry.
MDC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.90%, MDC is in the better half of the industry, outperforming 64.18% 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.

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

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.