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Housing

Homebuilder Cuts Dividend (KBH)

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By Paul Ausick Published
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KB Home (NYSE: KBH) announced late yesterday that the company’s quarterly dividend for its second fiscal quarter ending in May will be reduced from $0.0625 to $0.025. In the announcement, the company’s CEO spelled out the problem even while trying to make it sound like good news:

Having ended the first quarter with a value of homes in backlog 30% greater than the year before, and with increases in all four regions of the business, we see signs that the housing market is recovering. This modification in the dividend will help us to take advantage of growth opportunities while continuing KB Home’s 25-year tradition of paying quarterly dividends to its stockholders.

In other words, KB Home needs the cash more than shareholders do.

Shareholders don’t seem to mind either. Shares of KB Home are up 3.3% at $8.48 in the pre-market, in a 52-week range of $5.02-$13.12.

Paul Ausick

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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