Highest Paying Dividend Stocks – In Focus MDC

Our goal in our “In Focus” posts is to direct investors to not just the highest paying dividend stocks, but the best dividend paying stocks.

Background

M.D.C. Holdings (MDC) engages in residential homebuilding and financial services businesses in the U.S. Its main homebuilding subsidiary is “Richmond American Homes.”

Stock Fundamentals

In 2006, MDC was one of the top 10 homebuilders in the U.S. However, since then, its sales have barely increased and its stock price has been more than cut in half.

As might be expected from a firm in the construction services industry, MDC’s sales are extremely volatile. Even more disturbing, its cash flow from operations is negative, and has been negative for roughly five years. On the positive side, its equity/assets ratio is 0.52, which is actually above where it has been historically. It looks like it has been able to achieve this because its cash flow from investment has been positive for roughly five years. This is very unusual. Normally cash flow from investment is negative.

Consequently, MDC is a risky company (beta = 1.65). Furthermore, most of its other fundamentals are, on balance, average. We rate this company’s overall fundamentals a C (fair), and we have a Hold recommendation on it.

Stat Sheet – M.D.C. Holdings, Inc.

  Information
Ticker MDC
Industry Construction Services
Price $ 24.83
Market Cap  $ 1,211
Dividend Yield 4.03
Dividend/CFOp NM
Equity/Assets 0.52
Financial Strength Average
Growth Prospects Low
Beta 1.65
Price Volatility Average
Stock Fundamentals C
Recommendation Hold

We have more research available on other top dividend paying stocks as well as other research. To view all this research, click the link below.

Best Dividend Paying Stocks and More

We have a penchant for the best monthly dividend stocks. If you would like to learn why, click the link below.

Best Monthly Dividend Stocks

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Highest Paying Dividend Stocks – In Focus MDC

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