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M.D.C. Holdings Inc (MDC) 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.

The key three are:

(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

Over the past year, MDC’s share price rose about 48.5% from $33.90 to $50.05 as of Thursday’smarket close.

If MDC’s stock trades in the range of $30.00 to $60.00 this next year, its recent $50.06 share price might rise to $54.00 by next year. Of course, MDC’s price could drop about the same $3.94 amount, or more.

My upside estimate of $3.94, however, is aligned with the median of target estimates from 4 analysts who track the stock for brokers.

MDC Dividend

MDC’s quarterly dividends have been paid since 1994. MDC’s most recent dividend, payable September 23rd to shareholders of recede August 8, is $0.55.So, MDC’sannual dividend payout is projected at $2.20.

MDC Returns

Adding the $ 2.20 anticipated annual dividend to M.D.C, Holdings Inc’s estimated $3.94 price upside, reveals a $6.14 potential gross gain per share for the coming year.

At Thursday’s $50.06 closing price, a little over $1000 would buy 20 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.50 per share.

Subtracting that maybe $0.50 brokerage cost from my estimated $6.14 gross gain per share makes a net gain amounting to $5.64 X 20 shares = $112.80 for about a 11.25% net gain.

This may be the time to pounce on M.D.C, Holdings Inc shares. But beware, MDC is a mid cap stock. Furthermore, the estimated $43.90 dividend from $1000 invested comes in at $6.16 less than the recent single share price. Wait for the price to pull back to $46.90. The choice is yours.

The foregoing article is based on past history of M.D.C, Holdings Inc. The only accurate measure of future performance is from active investment in the company.

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