Is NYSE:MDC a Good Fit 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.

How do we evaluate the Dividend 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:

• Compared to an average industry Dividend Yield of 3.25, MDC pays a better dividend. On top of this MDC pays more dividend than 88.06% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.45, 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 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.
• 38.93% of the earnings are spent on dividend by MDC. This is a low number and sustainable payout ratio.

ChartMill's Evaluation of Health

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

• An Altman-Z score of 3.67 indicates that MDC is not in any danger for 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.
• MDC has a Current Ratio of 7.70. This indicates that MDC is financially healthy and has no problem in meeting its short term obligations.
• MDC's Current ratio of 7.70 is amongst the best of the industry. MDC outperforms 86.57% of its industry peers.
• A Quick Ratio of 2.69 indicates that MDC has no problem at all paying its short term obligations.
• MDC has a better Quick ratio (2.69) than 91.04% of its industry peers.

A Closer Look at Profitability for NYSE:MDC

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:

• The Return On Assets of MDC (7.08%) is better than 61.19% 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.
• MDC has a Profit Margin of 8.59%. This is in the better half of the industry: MDC outperforms 68.66% of its industry peers.
• In the last couple of years the Profit Margin of MDC has grown nicely.
• The Operating Margin of MDC (10.03%) is better than 62.69% of its industry peers.
• MDC's Operating Margin has improved in the last couple of years.

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

Keep in mind

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.