This week, I'm seeking the second robust dividend-paying stock from the consumer cyclical business sector for my Ivy portfolio. 

That cyclicals sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.

Today I'm reviewing a small-cap residential construction firm, named M.D.C. Holdings Inc. Its trading ticker symbol is MDC.

M.D.C. Holdings Inc is engaged in the residential construction industry. Its home building operations consists of construction and sale of single-family detached homes and financial services including mortgage loans and title agency services.

Its homebuilding operations include purchasing finished lots or developing lots for the construction and sale primarily of single-family detached homes to first-time and first-time move-up homebuyers under the Richmond American Homes name. 

The company conducts its homebuilding operations in Arizona, California, Nevada, Washington, Colorado, Utah, Virginia, Florida, Maryland, Pennsylvania, and New Jersey. 

Its financial services operations consist of originating mortgage loans primarily for homebuyers; providing insurance coverage primarily to its homebuilding subsidiaries and subcontractors.

M.D.C. Holdings, Inc. was founded in 1972 and is based in Denver, Colorado.

I use three key data points to gauge the value of any dividend equity or fund like M.D.C. Holdings Inc: 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

MDC Price

MDC's price per share was $29.60 at yesterday's market close. A year ago its price was $33.18 for a price drop of $3.58 per share for the year or a 10.8% tumble. 

Assuming MDC's price will trade in the range of $25 to $35  next year, MDC's recent $29.60 price could maybe climb by $3.00 and improve to $32.60 by pre-December, 2019. 

MDC Dividends

MDC's most recent quarterly dividend was $0.30 declared October 22nd and paid, November 21st. 

That $0.30 quarterly stipend equates to an annual amount of $1.20 yielding 4.05% at yesterday's closing $29.60 price.

Gains For MDC?

Adding the $1.20 annual dividend to my estimated $3.00 annual price upside estimate for M.D.C. Holdings Inc adds up to a $4.20 potential gross annual per share gain, which will be reduced by costs to trade the shares.  

For a little over $1,000.00 invested today at the $29.59 recent price we could buy 34 MDC shares. 

A $10 broker fee paid half at purchase and half at sale costs us $0.29 per share.

Subtract that $0.29 brokerage cost from the estimated $4.20 gross annual gain leaves a net gain of $3.91X 34 shares 

= $132.94

for a 13% net gain on a $1,006.40 investment.

Therefore, M.D.C. Holdings Inc whose trading ticker symbol is MDC, now shows a possible 13% net gain including a 4.05% dividend yield. 

Ten brokers cover this stock:

Two say "buy" MDT shares

One thinks MDC will "outperform" peers.

Six say "hold" your MDC shares.

One thinks MDS will "underperform" peers.

The median price consensus among those ten brokers is a $3.26 gain, slightly over my $3 estimate.

Therefore, you could look at MDC, and see it has made money, is making money, but could net a 13 to 15% net annual gain including that  4.05% dividend yield. It could be more, it could be less. 

The above speculation is based on past year performance. The actual results remain to be seen to determine if M.D.C. Holdings Inc is worth your time and money.