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By Dhirendra Tripathi
Investing.com – Lennar stock (NYSE:LEN) rose 3% on Thursday after the company said it would hike its annual dividend by 50%.
The company will now pay an annual dividend of $1.50 per share, resulting in a quarterly cash dividend of 37 cents per share for both class A and B stocks. The next quarterly dividend is payable on February 10 to those whose names appear in the company’s books as of January 27.
The yield on the new dividend is 1.4% based on the stock’s Wednesday closing price of $107.94.
The company declared its fourth-quarter results last month. Lennar’s revenue for the quarter ended November 30 rose 24% to $8.4 billion. An increase in revenue per square foot was offset by an increase in costs per square foot as the majority of homes delivered during the fourth quarter had higher costs from lumber purchases made earlier in the year.
Lumber prices, a key cost item for homebuilders like Lennar, have stayed elevated for more than year as demand for housing has boomed. They topped $1,500 per thousand board feet in spring last year. Prices crashed subsequently but only to strengthen again later. Lumber futures for January are again ruling around $1,200.