Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week the portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the consumer cyclical sector. 

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

Today I'm reviewing a Small-Cap Colorado-based residential construction company.

The company's name is M.D.C. Holdings, Inc. It's trading ticker symbol is MDC.  

The company is engaged in the residential construction industry. Its home building operation consists of construction and sale of single-family detached homes along with financial services including mortgage loans and title agency services.

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.

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

I use three key data points gauge the value of any dividend equity or fund like M.D.C. Holdings, Inc. Company (MDC): 

(1) Price

(2) Dividends

(3) Returns

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

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

MDC Price

M.D.C.'s price was $31.03 per share at yesterday's market close.A year ago its price was $31.25 for a loss of $.22 per share in the past year.  

Assuming M.D.C.'s price will continue to trade in the range of $27.00 to $35.00 next year, its price could grow about $1.50 from $31.03 to $32.53 by late- May, 2019. 

MDC Dividends

M.D.C.'s most recently declared quarterly dividend was $0.30 per share declared in April, and paid in May.That $0.30 Q dividend equates to an annual payout of $1.20 for 2018 and yields 3.86% at yesterday's $31.03 closing stock price.

Gains For MDC?

The $1.50 estimated year over year price gain plus an anticipated dividend of$1.20 makes a projected gross annual gain of $2.70 per share, which will be reduced by the costs to trade those shares.  

$1,000.00 invested today at the $31.03 price buys 32 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts$0.31 per share.

Taking that $0.31 brokerage cost out of the estimated $2.70 gross gain per share leaves a net gain of $2.39 X 32 shares 

= $76.48

or a 7.6% potential net gain on a $992.96 investment.

Therefore, M.D.C. Holdings, Inc. (whose ticker symbol is MDC), now shows a possible 7.6% net gain including a 3.86% dividend yield. 

Twelve analysts cover this stock. 

One says "buy."

One say M.D.C. will "outperfom" the market. 

Eight say "hold."

Two say M.D.C. will "underperfom" the market.

The median analyst recommendation is 2.9 or hold.

Y Charts also rates MDC "attractive" for an overall "Y" rating. Also Y Charts shows "Excellent" for a Value score of 10 out of ten points. And YCharts also ranks MDC "strong" with 7 out of 10possible Fundamental points. Y Charts also shows an Historic Valuation score as 4.48% undervalued, based on a $32.48 historic value multiple.

You could look at all those numbers like this: M.D.C Holdings, Inc. (MDC) has made money, is making money, and could net a 7.6% net gain next year including3.86% dividend yield. It could be more, it could be less.

The above speculation is conjecture based on past year performance. Actual results remain to be seen.They could turn out to be far higher or lower. More study is required for you to determine if M.D.C Holdings Inc. (MDC) is worth your time and money.
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