Toll Brothers Inc. Plans Quarterly Dividend of $0.26 (NYSE:TOL)

Key Points

• Toll Brothers declared a quarterly dividend of $0.26 per share, payable October 23 to shareholders of record October 9. The dividend is equivalent to $1.04 annually and yields approximately 0.8%, with a low 7.2% payout ratio.
• The homebuilder reported quarterly EPS of $2.97, exceeding analyst expectations of $2.93, while revenue reached $2.66 billion. However, revenue declined 9.7% year over year, and prior-year EPS was higher at $3.73.
• Analysts maintain a favorable outlook, with a consensus rating of “Moderate Buy” and an average price target of $167.27, compared with the stock’s reported opening price of $132.43.

Toll Brothers Inc. (NYSE:TOL - Get Free Report) announced a quarterly dividend on Wednesday, September 16th. Investors of record on Friday, October 9th will be paid a dividend of 0.26 per share by the construction company on Friday, October 23rd. This represents a c) annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Friday, October 9th.

Toll Brothers has raised its dividend payment by an average of 0.2%annually over the last three years and has raised its dividend every year for the last 5 years. Toll Brothers has a payout ratio of 7.2% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Toll Brothers to earn $13.95 per share next year, which means the company should continue to be able to cover its $1.04 annual dividend with an expected future payout ratio of 7.5%.

Toll Brothers Trading Down 1.3%

TOL stock opened at $132.43 on Thursday. The company has a debt-to-equity ratio of 0.32, a current ratio of 4.53 and a quick ratio of 0.55. Toll Brothers has a 1-year low of $123.14 and a 1-year high of $168.36. The business has a 50 day simple moving average of $146.39 and a two-hundred day simple moving average of $144.16. The company has a market capitalization of $12.20 billion, a price-to-earnings ratio of 10.63, a PEG ratio of 1.08 and a beta of 1.34.

Toll Brothers (NYSE:TOL - Get Free Report) last released its quarterly earnings data on Tuesday, August 18th. The construction company reported $2.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.93 by $0.04. Toll Brothers had a net margin of 11.14% and a return on equity of 14.21%. The firm had revenue of $2.66 billion for the quarter, compared to analysts' expectations of $2.62 billion. During the same quarter last year, the business posted $3.73 earnings per share. The company's revenue for the quarter was down 9.7% compared to the same quarter last year. Research analysts anticipate that Toll Brothers will post 12.81 EPS for the current fiscal year.

Analyst Ratings Changes

Several analysts have commented on the stock. UBS Group boosted their price target on shares of Toll Brothers from $187.00 to $195.00 and gave the stock a "buy" rating in a research note on Thursday, August 20th. Citigroup raised their price objective on Toll Brothers from $176.00 to $179.00 and gave the company a "buy" rating in a research report on Friday, August 21st. BTIG Research initiated coverage on Toll Brothers in a research report on Tuesday, June 9th. They issued a "buy" rating on the stock. Royal Bank Of Canada reissued an "outperform" rating and set a $158.00 price target on shares of Toll Brothers in a research note on Thursday, June 11th. Finally, Evercore restated an "outperform" rating and set a $191.00 price target on shares of Toll Brothers in a report on Thursday, August 20th. Thirteen investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $167.27.

Toll Brothers Company Profile

Toll Brothers, Inc is a luxury homebuilding company that designs, constructs, markets and sells residential properties in the United States. The company develops communities featuring single-family detached homes, townhomes and condominiums, as well as active-adult communities and urban high-rise residences. Its offerings generally target move-up, luxury and resort-style homebuyers, with homes available in a range of designs, locations and customization options.

Through related operations, Toll Brothers also provides mortgage financing, title and settlement services, homeowners insurance and other services that support the home purchase process.

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