KB Home (NYSE:KBH) Shareholders Set to Receive $0.25 Quarterly Dividend

Key Points

• KB Home declared a quarterly dividend of $0.25 per share, payable November 25 to shareholders of record on November 12. The payment represents a $1.00 annualized dividend and a 2.3% yield.
• The dividend appears well covered, with a current payout ratio of 13.5%; analysts expect next year’s earnings of $3.77 per share, implying a projected payout ratio of 26.5%.
• KB Home’s latest quarter showed mixed results: EPS of $1.05 exceeded estimates, but revenue fell 20% year over year and earnings declined from $1.61 per share in the prior-year quarter.

KB Home (NYSE:KBH - Get Free Report) declared a quarterly dividend on Thursday, October 8th. Stockholders of record on Thursday, November 12th will be given a dividend of $0.25 per share by the construction company on Wednesday, November 25th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Thursday, November 12th.

KB Home has increased its dividend payment by an average of 0.2%annually over the last three years and has raised its dividend annually for the last 2 consecutive years. KB Home has a dividend payout ratio of 13.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect KB Home to earn $3.77 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 26.5%.

KB Home Price Performance

KB Home stock opened at $44.38 on Friday. The company has a market cap of $2.72 billion, a price-to-earnings ratio of 12.50, a P/E/G ratio of 2.29 and a beta of 1.34. The firm has a 50-day moving average of $51.75 and a 200-day moving average of $52.74. KB Home has a one year low of $43.37 and a one year high of $67.57.

KB Home (NYSE:KBH - Get Free Report) last released its earnings results on Tuesday, September 22nd. The construction company reported $1.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.88 by $0.17. KB Home had a return on equity of 6.56% and a net margin of 4.39%.The business had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter in the previous year, the business earned $1.61 earnings per share. KB Home's quarterly revenue was down 20.0% on a year-over-year basis. As a group, sell-side analysts expect that KB Home will post 3.25 earnings per share for the current year.

Insider Transactions at KB Home

In other KB Home news, Director Arthur Collins sold 4,000 shares of the stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $56.96, for a total value of $227,840.00. Following the transaction, the director directly owned 9,157 shares of the company's stock, valued at $521,582.72. This represents a 30.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Albert Z. Praw sold 22,015 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total transaction of $1,292,280.50. Following the completion of the transaction, the executive vice president directly owned 104,062 shares in the company, valued at approximately $6,108,439.40. This represents a 17.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 4.69% of the company's stock.

Institutional Investors Weigh In On KB Home

Institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in shares of KB Home in the second quarter valued at about $618,489,000. Donald Smith & CO. Inc. bought a new stake in KB Home in the 2nd quarter valued at about $108,652,000. Bamco Inc. NY acquired a new position in shares of KB Home during the 2nd quarter worth approximately $37,500,000. Bank of New York Mellon Corp acquired a new position in shares of KB Home during the 2nd quarter worth approximately $35,837,000. Finally, Bank of America Corp DE bought a new position in shares of KB Home during the second quarter worth approximately $35,377,000. Institutional investors own 96.09% of the company's stock.

About KB Home

KB Home is a national homebuilder that designs, constructs and sells single-family homes and townhomes. The company offers homes in a range of floor plans, sizes and price points, with options that allow buyers to personalize features and finishes. Its communities typically include amenities such as parks, open spaces and other neighborhood improvements.

Founded in 1957, KB Home is headquartered in Los Angeles, California. The company serves residential markets across the United States, including Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.

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