KB Home (NYSE:KBH) Plans Quarterly Dividend of $0.25

Key Points

• KB Home announced a quarterly dividend of $0.25 per share, payable on August 20 to shareholders of record on August 6. The dividend implies an annualized yield of about 1.8%.
• The company’s dividend appears well covered, with a 13.5% payout ratio and an expected future payout ratio of 22.5% based on analyst earnings estimates. KB Home has also raised its dividend in each of the last two years.
• In its latest quarterly results, KB Home reported $0.43 EPS, missing estimates by a penny, while revenue of $1.11 billion slightly beat expectations but fell 27.3% year over year. Analysts currently rate the stock a Hold on average, with a consensus target price of $60.17.

KB Home (NYSE:KBH - Get Free Report) announced a quarterly dividend on Thursday, July 9th. Investors of record on Thursday, August 6th will be paid a dividend of 0.25 per share by the construction company on Thursday, August 20th. This represents a c) annualized dividend and a yield of 1.8%. The ex-dividend date is Thursday, August 6th.

KB Home has increased its dividend by an average of 0.2%per year over the last three years and has increased its dividend every year for the last 2 years. KB Home has a payout ratio of 13.5% meaning its dividend is sufficiently covered by earnings. Equities analysts expect KB Home to earn $4.45 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 22.5%.

KB Home Price Performance

Shares of KBH stock opened at $56.76 on Friday. The stock has a market capitalization of $3.56 billion, a PE ratio of 19.78, a PEG ratio of 9.36 and a beta of 1.34. The business's 50 day simple moving average is $52.72 and its 200 day simple moving average is $55.79. KB Home has a one year low of $44.03 and a one year high of $68.71.

KB Home (NYSE:KBH - Get Free Report) last released its quarterly earnings results on Tuesday, June 23rd. The construction company reported $0.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.01). The firm had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.09 billion. KB Home had a return on equity of 7.67% and a net margin of 4.94%.The firm's revenue for the quarter was down 27.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.50 EPS. As a group, research analysts expect that KB Home will post 3.29 earnings per share for the current year.

Wall Street Analyst Weigh In

KBH has been the subject of several recent analyst reports. Zacks Research upgraded shares of KB Home from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 25th. Truist Financial boosted their price objective on KB Home from $50.00 to $56.00 and gave the company a "hold" rating in a research note on Wednesday, June 24th. Barclays lifted their price objective on shares of KB Home from $56.00 to $57.00 and gave the company an "overweight" rating in a research note on Thursday, June 25th. Wall Street Zen raised shares of KB Home from a "sell" rating to a "hold" rating in a research note on Saturday, June 27th. Finally, Bank of America decreased their price target on shares of KB Home from $63.00 to $56.00 and set a "neutral" rating for the company in a research note on Wednesday, March 25th. Four analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, KB Home currently has an average rating of "Hold" and a consensus target price of $60.17.

About KB Home

KB Home is an American homebuilding company headquartered in Los Angeles, California. Founded in 1957, it was among the first homebuilders to go public, offering investors access to one of the nation's largest residential construction platforms. The company is structured to serve a broad spectrum of homebuyers, with a particular focus on first-time, first move-up and active adult segments. As a public company trading on the New York Stock Exchange under the symbol KBH, KB Home draws on decades of experience in land acquisition, construction and community planning.

At its core, KB Home designs and constructs single-family detached and attached homes, townhomes and condominium units.

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