Published on 13 Mar 2024 on Zacks via Yahoo Finance

Toll Brothers (TOL) Lures Investors With 10% Dividend Hike

Toll Brothers, Inc. TOL declared a rise in its dividend payout, underscoring its commitment to sustainable expansion and its capacity to generate lasting value for shareholders.The board of directors approved a 10% hike in its quarterly cash dividend to 23 cents per share (92 cents annually) from 21 cents (84 cents annually). The new dividend will be paid out on Apr 19 to shareholders of record as of Apr 5, 2024. The dividend yield, based on TOL’s Mar 12 closing price, is approximately 0.75%.Shares of this Horsham, PA-based homebuilder have gained 2.4% during the trading session on Mar 12 and 0.4% in the after-hour trading session on the same day.

Consistent Dividend

Toll Brothers has consistently demonstrated a pattern of escalating dividend distributions, marking increases over the past four fiscal years. This upward trajectory can be attributed to its robust financial position, ample liquidity, strong backlog and improved macro backdrop, all of which serve as key drivers for the dividend elevation.As of the first quarter of fiscal 2024-end, Toll Brothers had more than $2.5 billion of total liquidity, comprising $754.8 million in cash and cash equivalents and $1.8 billion available under the revolver capacity.At the end of first-quarter fiscal 2024, the company had a total backlog of $7.08 billion. Considering the range of 10,000-10,500 homes projected to be delivered (up from 9,597 units in fiscal 2023), the company believes fiscal 2024 to be another solid high-margin year.Based on the strength of backlog and including estimates for increased cancelations and incentivizing, the company expects fiscal 2024 earnings per share between $13.25 and $13.75 (compared with $12.36 per share in fiscal 2023) and book value per share to increase to approximately $77 at the fiscal 2024-end.