In our last Number Cruncher we discussed how OneMain holdings (OMF:NYSE), Sabine Royalty Trust (SBR:NYSE), M.D.C Holdings (MDC:NYSE) are companies with dividends of at least 3.2%, double the S&P 500, with dividend growth potential.
Let’s begin with OMF
OMF has an SP score of 67, down by one in the past 90 days. This is derived by using the Performance score of 72.7 and the Risk score of 20.6. Despite having difficulties in the last year, OMF has been able to maintain an exceptional average 5Y growth of its earnings per share at 32.8%. Combined with its strong Value score of 83 and Quality score of 78, it is an attractive stock.
The Intrinsic value rose sharply since 2020, but has fallen sharply in the last quarter from $150 to $75, while remaining comfortably above the current price of $45.85. We note that historically, our calculation of intrinsic value was in line with the share price and our most recent estimation of the intrinsic value is significantly higher than the current share price, making it a compelling buy signal.
SBR has an SP score of 84, up by three in the past 90 days. This is derived by using the Performance score of 84.3 and the Risk score of 15.9. The company has an incredible average 5Y annual sales growth of 41.3% and a 1Y growth of 162.8%. Last year, the company saw a significant increase in revenues and profits as oil and gas prices rose sharply in the first half.
In terms of balancing performance and risk, SBR outperforms its competitors in the financial sector by a large margin, specifically on the performance side.
Lastly, for M.D.C Holdings
MDC has an SP score of 77, up by thirteen in the past 90 days. This is derived by using the Performance score of 76.2 and the Risk score of 21.1. Furthermore, the stock’s favorable value score of 85, growth score of 74, and quality score of 70 makes it an appealing investment opportunity based on those metrics.
While the NOPAT and EVA give a negative signal due to their respective declines, MDC could continue its upward trajectory that began in Q3 2022, given its impressive value, growth, and quality scores seen previously.
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