Toll Brothers hikes dividend by 9% amid steady growth

Published 11/03/2025, 21:38
Toll Brothers hikes dividend by 9% amid steady growth

FORT WASHINGTON, Pa. - Toll Brothers, Inc. (NYSE:TOL), a prominent builder of luxury homes, announced today a 9% increase in its quarterly cash dividend to shareholders, marking the fifth consecutive year of dividend growth. The increased dividend of $0.25 per share is scheduled for payment on April 25, 2025, to shareholders of record as of April 11, 2025. According to InvestingPro data, the company has maintained dividend payments for 9 consecutive years, with a current yield of 0.86%. The company’s strong financial health is reflected in its impressive current ratio of 4.41, indicating robust liquidity.

The company, which has been operational for 58 years and publicly traded since 1986, has a footprint that spans over 60 markets in 24 states and the District of Columbia. Toll Brothers caters to a diverse clientele, including first-time buyers, move-up and second-home buyers, active adults, and urban and suburban renters. Trading at an attractive P/E ratio of 7.28 and with a market capitalization of $10.6 billion, InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value metrics.

Toll Brothers has consistently been recognized for its performance and reputation in the homebuilding industry. It has been listed among Fortune magazine’s World’s Most Admired Companies for over a decade and has received multiple Builder of the Year awards. In 2024, Chairman and CEO Douglas C. Yearley, Jr. was acknowledged as one of the top 25 CEOs by Barron’s magazine.

The company’s growth and its commitment to increasing shareholder returns reflect its stable position in the luxury homebuilding market. Toll Brothers continues to operate a variety of subsidiaries, including those in architectural, engineering, mortgage, and smart home technology sectors, further solidifying its comprehensive approach to the homebuilding industry.

This dividend announcement is based on a press release statement from Toll Brothers. The company’s common stock is listed on the New York Stock Exchange and is widely followed by investors interested in the real estate development sector. For a deeper understanding of Toll Brothers’ financial position and growth prospects, investors can access comprehensive analysis and 14 additional ProTips through InvestingPro’s detailed research reports, which provide expert insights on over 1,400 US stocks.

In other recent news, Toll Brothers reported its first-quarter 2025 earnings, missing both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $1.75, below the expected $2.04, and revenue of $1.84 billion, falling short of the anticipated $1.91 billion. Despite these misses, Toll Brothers maintained its full-year guidance for deliveries and margins. In response to the earnings report, several analysts adjusted their price targets for Toll Brothers. Keefe, Bruyette & Woods lowered the target to $132, citing slightly below-expectation results and market uncertainties, while maintaining a Market Perform rating. Citi also revised its target to $123, reflecting a decrease in earnings estimates due to impairments and anticipated softer demand. Meanwhile, RBC Capital reduced its target to $139 but maintained an Outperform rating, highlighting Toll Brothers’ strong gross margin and robust land position. These adjustments come amid mixed demand signals and a cautious outlook for the housing market.

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