Why NYSE:MDC is a Top Pick for Dividend Investors.

Last update: Feb 9, 2024

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.

Dividend Analysis 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 7 out of 10:

MDC's Dividend Yield is rather good when compared to the industry average which is at 3.15. MDC pays more dividend than 89.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.47, MDC pays a bit more dividend than the S&P500 average.
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 Assessment of NYSE:MDC

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 6 for health:

MDC has an Altman-Z score of 3.66. This indicates that MDC is financially healthy and has little risk of bankruptcy at the moment.
MDC has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as MDC would need 3.28 years to pay back of all of its debts.
A Current Ratio of 7.70 indicates that MDC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 7.70, MDC belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
A Quick Ratio of 2.69 indicates that MDC has no problem at all paying its short term obligations.
MDC has a Quick ratio of 2.69. This is amongst the best in the industry. MDC outperforms 89.55% of its industry peers.

Assessing Profitability 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:

With a decent Return On Assets value of 7.08%, MDC is doing good in the industry, outperforming 64.18% of the companies in the same industry.
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.
Looking at the Profit Margin, with a value of 8.59%, MDC is in the better half of the industry, outperforming 68.66% of the companies in the same industry.
In the last couple of years the Profit Margin of MDC has grown nicely.
MDC has a Operating Margin of 10.03%. This is in the better half of the industry: MDC outperforms 62.69% of its industry peers.
MDC's Operating Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

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.