Daily Stock Analysis: M.D.C. Holdings

By Fredrik Arnold

Tuesday, February 7, 2023 10:46 PM EDT

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Photo by Yiorgos Ntrahas on Unsplash

M.D.C. Holdings Inc bears the ticker symbol MDC, and this is my first mention of M.D.C. Holdings Inc for this new Viking Portfolio I have, however, reported on it for some of my previous seven dog of the week folios.

M.D.C. Holdings Inc is an American holding company that operates home construction, mortgage, insurance, and title companies.

The company focuses on single-family and residential communities via its Richmond American Homes brand in Arizona, California, Colorado, Florida, Virginia, Nevada, Utah, and Washington.

MDC Holdings constructs homes for first-time and move-up homebuyers. Its segments include Homebuilding and Financial Services.

Its Home construction in Colorado, California, Washington, and Arizona derive most of the company's homebuilding revenue, followed by Utah, and Virginia.

The company was founded in 1972 and is headquartered in Denver, Colorado.

Three key data points gauge

M.D.C. Holdings Inc, or any dividend paying firm:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

MDC Price

M.D.C. Holdings Inc price per share was $39.35 at Tuesday’s market close. In the past year, MDC share price fell by $4.33 or about 9.9%.

If MDC stock trades in the range of $24.00 to $48.00 this next year, its recent $39.35 share price might reach $40.40 by next year. That upside estimate of $1.05 is about equal to the average annual increase in MDC shareprice over the past 20 years.

MDC Dividends

M.D.C. Holdings Incmost recent quarterly dividend of $0.50 casts a forward annual yield of 5.08%.

MDC Returns

Adding the $2.00 annual estimated

M.D.C. Holdings Inc dividend to the one-year price upside estimate of $1.05 reveals a $3.05 potential gross gain estimate per share.

At Tuesday’s $39.35 closing price, a little over $1000 would buy 25 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.40 per share.

Subtract that maybe $0.40 brokerage cost from my estimated $3.05 gross gain makes a net gain of $2.65 X 25 shares = $66.25 for a 6.6% net gain including the 5.08% annual dividend yield.

In the next year our $1K investment in shares of M.D.C. Holdings Inc would generate $50.80 in cash dividends. However, a single share of MDC stock at Tuesday’s $39.35 price is over 1.25 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to buy

M.D.C. Holdings Inc shares based on their dividends for 2023. The current dividend from $1K invested is 1.29 times higher than the MDC single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of M.D.C. Holdings Inc. Only time and money invested in this stock will determine its future market value.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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