This home builder just reported a great quarter—beating on the top and bottom lines. The shares have a current annual dividend yield of 2.48%, paid quarterly.
M.D.C. Holdings, Inc. (MDC)
From Forbes Dividend Investor
Home builders are benefitting from high prices and extremely tight inventory of new homes nationwide. Denver-based M.D.C. Holdings owns the Richmond American Homes brand, which is one of the top 15 home builders in the United States, with a major presence in Colorado, Florida, Las Vegas, Maryland, Northern California, Northern Virginia, Phoenix, Salt Lake City, Seattle, Southern California, and Tucson, Arizona.
Revenue in 2021 is expected to grow 29% to $4.99 billion, with earnings up 38% to $7.06 per share, giving the stock a forward price-earnings ratio of 7.4, which is 15% below its five-year average P/E. MDC also trades at substantial discounts to its five-year average multiples of enterprise value-to-EBITDA and price-to-cash flow.
MDC reports earnings on Tuesday, and there is an ex-dividend date on February 9 for a cash payout of $0.40 per share, plus a special 8% dividend paid in stock so that you will receive two additional shares of stock for every 25 that you own. Nancy’s Note: MDC handily beat earnings estimates of $1.73 by posting EPS of $2.19.
John Dobosz, Forbes Dividend Investor, newsletters.forbes.com, 212-367-3388, January 30, 2021