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

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 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 8 out of 10:

• MDC has a Yearly Dividend Yield of 5.59%, which is a nice return.
• 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.
• 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.
• 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.

How do we evaluate the Health 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 7 out of 10:

• MDC has an Altman-Z score of 3.34. This indicates that MDC is financially healthy and has little risk of bankruptcy at the moment.
• MDC has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
• MDC's Debt to FCF ratio of 1.19 is fine compared to the rest of the industry. MDC outperforms 74.63% of its industry peers.
• 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.
• MDC's Current ratio of 7.24 is amongst the best of the industry. MDC outperforms 85.07% of its industry peers.
• A Quick Ratio of 2.04 indicates that MDC has no problem at all paying its short term obligations.
• MDC has a better Quick ratio (2.04) than 83.58% of its industry peers.

What does the Profitability looks like for 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's Return On Assets of 7.32% is fine compared to the rest of the industry. MDC outperforms 61.19% of its industry peers.
• Looking at the Profit Margin, with a value of 7.70%, MDC is in the better half of 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's Operating Margin of 12.14% is fine compared to the rest of the industry. MDC outperforms 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

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.