KB Home (NYSE: KBH) on Monday announced that its Board of Directors approved an increase in the company’s quarterly cash dividend on its common stock, more than tripling the rate to $.09 per share from $.025 per share. At the new quarterly rate, the annual cash dividend will now be $.36 per share compared to the previous rate of $.10 per share.

New homes sold at the strongest pace in a decade last month, and this demand is driving positive outlook for home builder stocks going into 2018.
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In addition, the board declared the next quarterly cash dividend, at the new rate, will be payable on August 15, 2019 to stockholders of record on August 1, 2019.

“With the success of our Returns-Focused Growth Plan in increasing both our scale and profitability, improving our asset efficiency and monetizing our deferred tax assets, we have generated significant operating cash flow. We have taken a balanced approach to allocating our capital, investing in the Company’s future growth, reducing our debt and, now, returning a meaningfully higher amount of cash to stockholders,” said Jeffrey Mezger, chairman, president and CEO.

“Our company is poised for both a strong second half of 2019, as well as a solid start to 2020, and we remain confident in KB Home’s future,” continued Mezger. “Building on our more than 30-year history of consistently paying a quarterly dividend, we are pleased to further advance our long-standing commitment to increasing stockholder returns with this dividend raise.”