Analyzing NYSE:MDC's Dividend Potential.

Consider MDC HOLDINGS INC (NYSE:MDC) as a top pick for dividend investors, identified by our stock screening tool. NYSE:MDC shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Understanding NYSE:MDC's Dividend Score

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:MDC scores a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.20, MDC pays a better dividend. On top of this MDC pays more dividend than 88.06% of the companies listed in the same industry.
• MDC's Dividend Yield is a higher than the S&P500 average which is at 2.40.
• On average, the dividend of MDC grows each year by 15.41%, 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.
• 38.93% of the earnings are spent on dividend by MDC. This is a low number and sustainable payout ratio.

Health Analysis for NYSE:MDC

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:MDC scores a 6 out of 10:

• An Altman-Z score of 3.68 indicates that MDC is not in any danger for bankruptcy at the moment.
• The Debt to FCF ratio of MDC is 3.28, which is a good value as it means it would take MDC, 3.28 years of fcf income to pay off all of its debts.
• A Current Ratio of 7.70 indicates that MDC has no problem at all paying its short term obligations.
• MDC has a Current ratio of 7.70. This is amongst the best in the industry. MDC outperforms 85.07% of its industry peers.
• MDC has a Quick Ratio of 2.69. This indicates that MDC is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 2.69, MDC belongs to the best of the industry, outperforming 92.54% of the companies in the same industry.

Understanding NYSE:MDC's Profitability

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:

• MDC's Return On Assets of 7.08% is fine compared to the rest of the industry. MDC outperforms 62.69% of its industry peers.
• The 3 year average ROIC (11.24%) for MDC is well above the current ROIC(6.75%). The reason for the recent decline needs to be investigated.
• The Profit Margin of MDC (8.59%) is better than 68.66% of its industry peers.
• In the last couple of years the Profit Margin of MDC has grown nicely.
• MDC has a better Operating Margin (10.03%) than 61.19% of its industry peers.
• MDC's Operating Margin has improved in the last couple of years.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.