KB Home (NYSE: KBH) today announced that its Board of Directors authorized the repurchase of up to $1.00 billion of the Company’s outstanding common stock, replacing a prior authorization, which had $113.6 million remaining. The Company intends to continue its share repurchases in 2024 in a projected range of between $200 million and $400 million for the full year, including $50 million of share repurchases completed during the Company’s 2024 first quarter.
The Company’s Board also approved an increase in the quarterly cash dividend on the Company’s common stock to $.25 per share from $.20 per share. This 25% increase results in an annualized dividend of $1.00 per share, representing a yield of approximately 1.6%, based on the closing price of KB Home’s common stock on April 17, 2024. The yield is in-line with the Company’s long-standing target of about 1.5%. Together with the increase the Board authorized in July 2023, the Company has raised its quarterly dividend by 67% in the past nine months.
In addition, the Company’s Board of Directors declared a quarterly cash dividend, at the $.25 per share rate, which will be payable on May 23, 2024, to stockholders of record on May 9, 2024.
“With a strong balance sheet and confidence in our ability to generate a significant level of operating cash flow as we continue to evolve into a larger and more profitable company, we are committed to our balanced approach of investing in our growth while simultaneously returning a meaningful level of cash to stockholders,” said Jeffrey Mezger, Chairman and Chief Executive Officer. “Today’s actions by our Board of Directors underscore our commitment to long-term value creation.”
About KB Home
KB Home is one of the largest and most trusted homebuilders in the United States. We operate in 47 markets, have built over 680,000 quality homes in our more than 65-year history, and are honored to be the #1 customer-ranked national homebuilder based on third-party buyer surveys. What sets KB Home apart is building strong, personal relationships with every customer and creating an exceptional homebuying experience that offers our homebuyers the ability to personalize their home based on what they value at a price they can afford. As the industry leader in sustainability, KB Home has achieved one of the highest residential energy-efficiency ratings and delivered more ENERGY STAR® certified homes than any other builder, helping to lower the total cost of homeownership.
