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Lennar (LEN) Cheers Investors With Quarterly Dividend Hike
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Maintaining its commitment to boost stockholder returns, Lennar Corporation (LEN - Free Report) announced a hike in dividend payout. This hike is reflective of the homebuilder’s focus on operational excellence, land strategy and cash flow.
The company increased its quarterly dividend by 33.3% to 50 cents per share ($2 annually) from 37.5 cents ($1.50 annually). This new dividend, approved by the board of directors, will be paid on Feb 7, 2024, to its stockholders of record as of Jan 24. The dividend yield, based on the latest payout and the closing market price of $148.16 per share on Jan 9, is approximately 1%.
Shares of this leading homebuilder gained 1.1% during the post-market trading session on Jan 9.
What’s Driving the Dividend Policy?
LEN is benefiting from its efficient implementation of the Lennar machine growth plan, land-lighter strategy and playbook strategies, reflecting its intent focus on generating strong cash flow, increasing returns on equity and assets and driving a solid bottom line.
The company reported impressive fourth-quarter fiscal 2023 results. Its top and bottom lines grew 7.8% and 3%, respectively, year over year. The uptrend was backed by its solid operating strategy of focusing on production and sales pace over price, land-light strategy and favorable pricing and product mix.
For first-quarter fiscal 2024, the company expects deliveries within 16,500-17,000 homes, with an average selling price of nearly $420,000. In the year-ago period, deliveries were 13,659 homes at an ASP of $448,000.
Image Source: Zacks Investment Research
Lennar’s stock has gained 29.7% compared with the industry's 31.6% growth in the past three months. Earnings estimate for fiscal 2024 has moved up to $11.37 per share from $11.33 in the past 30 days.
This Zacks Rank #3 (Hold) company has also delivered a trailing four-quarter earnings surprise of 21%, on average. The positive trend signifies analysts’ bullish sentiments, robust fundamentals and prospects of outperformance in the near term.
Stocks to Consider
Some better-ranked stocks in the same space are Dream Finders Homes, Inc. (DFH - Free Report) , PulteGroup, Inc. (PHM - Free Report) and NVR, Inc. (NVR - Free Report) .
Dream Finders Homes’ earnings per share (“EPS”) estimates for 2024 have increased to $2.81 from $2.62 over the past 30 days. This Jacksonville, FL-based homebuilder has been benefiting from the strategy of focusing on managing construction times and increasing inventory turnover.
PulteGroup currently flaunts a Zacks Rank #1. The company is benefiting from its operating model, which strategically aligns the production of build-to-order and quick-move-in homes with applicable demand across consumer groups.
PulteGroup’s EPS estimates for 2024 have increased to $11.37 from $11.33 over the past 30 days.
NVR is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings, all of which are primarily constructed on a pre-sold basis. Unlike other homebuilders, NVR’s sole business is selling and building quality homes by typically acquiring finished building lots without the risk of owning and developing land in a cyclical industry.
NVR currently carries a Zacks Rank #2 (Buy). EPS estimates for 2024 have increased to $415.39 from $412 over the past 30 days.
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Lennar (LEN) Cheers Investors With Quarterly Dividend Hike
Maintaining its commitment to boost stockholder returns, Lennar Corporation (LEN - Free Report) announced a hike in dividend payout. This hike is reflective of the homebuilder’s focus on operational excellence, land strategy and cash flow.
The company increased its quarterly dividend by 33.3% to 50 cents per share ($2 annually) from 37.5 cents ($1.50 annually). This new dividend, approved by the board of directors, will be paid on Feb 7, 2024, to its stockholders of record as of Jan 24. The dividend yield, based on the latest payout and the closing market price of $148.16 per share on Jan 9, is approximately 1%.
Shares of this leading homebuilder gained 1.1% during the post-market trading session on Jan 9.
What’s Driving the Dividend Policy?
LEN is benefiting from its efficient implementation of the Lennar machine growth plan, land-lighter strategy and playbook strategies, reflecting its intent focus on generating strong cash flow, increasing returns on equity and assets and driving a solid bottom line.
The company reported impressive fourth-quarter fiscal 2023 results. Its top and bottom lines grew 7.8% and 3%, respectively, year over year. The uptrend was backed by its solid operating strategy of focusing on production and sales pace over price, land-light strategy and favorable pricing and product mix.
For first-quarter fiscal 2024, the company expects deliveries within 16,500-17,000 homes, with an average selling price of nearly $420,000. In the year-ago period, deliveries were 13,659 homes at an ASP of $448,000.
Image Source: Zacks Investment Research
Lennar’s stock has gained 29.7% compared with the industry's 31.6% growth in the past three months. Earnings estimate for fiscal 2024 has moved up to $11.37 per share from $11.33 in the past 30 days.
This Zacks Rank #3 (Hold) company has also delivered a trailing four-quarter earnings surprise of 21%, on average. The positive trend signifies analysts’ bullish sentiments, robust fundamentals and prospects of outperformance in the near term.
Stocks to Consider
Some better-ranked stocks in the same space are Dream Finders Homes, Inc. (DFH - Free Report) , PulteGroup, Inc. (PHM - Free Report) and NVR, Inc. (NVR - Free Report) .
Dream Finders Homes currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dream Finders Homes’ earnings per share (“EPS”) estimates for 2024 have increased to $2.81 from $2.62 over the past 30 days. This Jacksonville, FL-based homebuilder has been benefiting from the strategy of focusing on managing construction times and increasing inventory turnover.
PulteGroup currently flaunts a Zacks Rank #1. The company is benefiting from its operating model, which strategically aligns the production of build-to-order and quick-move-in homes with applicable demand across consumer groups.
PulteGroup’s EPS estimates for 2024 have increased to $11.37 from $11.33 over the past 30 days.
NVR is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings, all of which are primarily constructed on a pre-sold basis. Unlike other homebuilders, NVR’s sole business is selling and building quality homes by typically acquiring finished building lots without the risk of owning and developing land in a cyclical industry.
NVR currently carries a Zacks Rank #2 (Buy). EPS estimates for 2024 have increased to $415.39 from $412 over the past 30 days.