5 Best Cheap Dividend Stocks to Buy Now

4. M.D.C. Holdings, Inc. (NYSE:MDC)

Share Price as of September 29: $28.71

M.D.C. Holdings, Inc. (NYSE:MDC) is a Colorado-based operative builders company that provides home building products and services to its consumers. The company is one of the best dividend stocks for income investors as it has been raising its payouts consistently for the past seven years. It currently pays a quarterly dividend of $0.50 per share and has a dividend yield of 7.11%, as of September 29.

In Q2 2022, M.D.C. Holdings, Inc. (NYSE:MDC) reported a 6% year-over-year growth in its home sale revenues to $1.45 billion. The company’s operating cash flow for the quarter stood at $53 million and its free cash flow came in at $46.1 million. The company reported $190 million in net income, up 23% from the same period last year.

In July, JPMorgan maintained a Neutral rating on M.D.C. Holdings, Inc. (NYSE:MDC) with a $38 price target, expressing concerns about the homebuilding sector. However, the firm appreciated the company’s pricing trends and its increased incentives.

At the end of June 2022, 17 hedge funds tracked by Insider Monkey owned stakes in M.D.C. Holdings, Inc. (NYSE:MDC), up from 13 in the previous quarter. The total value of these stakes is nearly $43 million, compared with $24.3 million worth of stakes owned by hedge funds a quarter earlier.