KB Home (NYSE:KBH) said its Board of Directors authorized the repurchase of up to $1.00 billion of the company's outstanding common stock.
The latest approval will replace a prior authorization, which had $113.6 million remaining.
KB Home intends to continue its share repurchases in 2024 in a projected range of $200 million-$400 million for the full year, including $50 million of share repurchases completed during the first quarter.
The Board also approved an increase in the quarterly cash dividend on the stock to $0.25 per share from $0.20 per share.
This 25% increase results in an annualized dividend of $1.00 per share with a yield of about 1.6% based on KB Home's closing price on April 17, 2024.
Together with the increase approved in July 2023, the company has increased its quarterly dividend by 67% in the past nine months.
Also, the Board of Directors declared a quarterly cash dividend, at the $0.25 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 Chairman and CEO Jeffrey Mezger.
KB Homes held $668.1 million in cash and equivalents as of February 29, 2024.
Price Action: KBH shares traded higher by 1.04% at $61.04 on premarket Friday.
Photo via Shutterstock