KB Home, a leading home construction company, has recently made an exciting announcement regarding its dividend policy. The company's Board of Directors has approved a substantial increase in the quarterly cash dividend on its common stock. This move signifies KB Home's commitment to creating long-term value for its stockholders while reflecting its robust financial performance and growth prospects. Let's dive into the details of this dividend increase and its potential impact on investors.

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Dividend Increase Details

KB Home's Board of Directors has approved a remarkable 33% increase in the company's quarterly cash dividend on its common stock. The dividend will now be set at $0.20 per share, up from the previous $0.15 per share. With this adjustment, the annualized dividend rate reaches $0.80 per share, translating to an approximate yield of 1.5% based on the closing price of the company's common stock on July 13, 2023. This announcement reflects KB Home's confidence in its financial strength and ability to generate substantial operating cash flow.

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Upcoming Dividend Payment

To the delight of stockholders, KB Home has declared that the next quarterly cash dividend will be paid at the increased rate of $0.20 per share. The dividend is scheduled to be paid on August 17, 2023, to stockholders of record as of August 3, 2023. This timely payment further underlines the company's commitment to providing consistent and attractive returns to its shareholders.

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Capital Allocation Strategy

Jeffrey Mezger, Chairman, President, and Chief Executive Officer of KB Home, highlighted the company's balanced approach to capital allocation. He emphasized that KB Home's increasing scale and profitability have led to a significant level of operating cash flow generation. As a result, the company intends to deploy this cash towards land acquisition and development, alongside returning capital to its stockholders. Mezger highlighted the importance of the quarterly cash dividend, which has been consistently paid for nearly 35 years, as a crucial element of this cash deployment strategy. This dividend increase affirms KB Home's commitment to enhancing stockholder value.