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PulteGroup (PHM) Cheers Investors With 25% Dividend Hike

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In a bid to reward shareholders, PulteGroup, Inc. (PHM - Free Report) announced a 25% hike in its quarterly dividend. The company has consistently enhanced shareholder value by implementing regular increases in dividends, executing share repurchase initiatives, and strategically reinvesting in its core business.

On Nov 16, PulteGroup announced that its board of directors has voted to boost the quarterly dividend to 20 cents per share (or 80 cents annually) from 16 cents (or 64 cents annually) paid earlier. The dividend will be payable on Jan 3, 2024, to its shareholders of record as of the close of business on Dec 19, 2023.

Enhancement of Shareholder Value

Since 2018, PulteGroup's board of directors adopted a regular quarterly cash dividend policy. In the last five years, PulteGroup accumulated $6.9 billion in operational cash flow, fueling its expansion efforts, and allocated nearly $4.0 billion to shareholders through dividends and share repurchases.

PulteGroup is also highly active on the buyback front. Through the first nine months of 2023, PulteGroup has repurchased 10.2 million common shares, or 4.5% of shares outstanding, for $700 million, or $68.76 per share. During the third quarter, the company also retired a total of $65 million of its 2026 and 2027 senior notes via open market repurchases. After these equity and debt repurchases, the company ended the quarter with $1.9 billion of cash and a debt-to-capital ratio of 16.5% (down from 18.7% in 2022).

Investors always prefer a return-generating stock. A high-dividend-yielding one is highly coveted. Stockholders are always looking for companies with a track record of consistent and incremental dividend payments.

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