KB Home (KBH) DIvidends Date & History

Key Takeaways

• KB Home (KBH) pays a quarterly dividend of $0.25 per share, translating to an annualized payout of $1.00 and a trailing dividend yield of approximately 1.67%.
• The company has maintained a remarkable 40-year streak of uninterrupted dividend payments, demonstrating long-term commitment to shareholder returns through multiple housing cycles.
• The payout ratio stands at roughly 13%–19% of earnings, indicating a highly conservative distribution policy with substantial room for future increases.
• Free cash flow coverage is robust, with dividend payments consuming only about 13% of trailing free cash flow.
• KB Home's dividend has grown at a compound annual growth rate (CAGR) of approximately 18% over the past five years, reflecting strong earnings expansion and management confidence.
• The yield sits above the median among large-cap U.S. homebuilders, making it a relatively attractive option within the sector for income-conscious investors.

Dividend Overview

KB Home, one of the largest homebuilders in the United States, operates across 49 markets and has constructed nearly 700,000 homes over its more than 65-year history. The company pays a quarterly cash dividend of $0.25 per share, resulting in an annualized dividend of $1.00. Based on recent trading levels, the trailing twelve-month dividend yield hovers around 1.67%. While this yield is modest compared to traditional high-yield sectors such as utilities or real estate investment trusts (REITs), it stands out within the homebuilding industry, where most large-cap peers offer yields below 1.5%. KB Home is best characterized as a dividend growth stock rather than a high-yield play. The company prioritizes steady, sustainable increases over time, supported by a disciplined capital allocation framework that also includes aggressive share repurchases. The most recent ex-dividend date was May 7, 2026, with the next quarterly payment expected around August 2026.

Dividend History and Growth

KB Home's dividend track record is among the longest in the homebuilding sector. The company has paid dividends consistently for 40 years, a streak that spans multiple housing downturns, including the 2008 financial crisis. Between 2012 and 2019, the quarterly dividend remained at a nominal $0.025 per share. A meaningful inflection point arrived in 2020, when the payout was raised to $0.09 per quarter, and since then, KB Home has executed a series of aggressive increases. By early 2023, the quarterly dividend reached $0.15, and in early 2024 it climbed further to $0.20. Since May 2024, the quarterly rate has held steady at $0.25. Fiscal year annual dividends per share have grown from $0.60 in 2022 to $0.70 in 2023, $0.95 in 2024, and $1.00 in 2025 — reflecting a five-year dividend CAGR of approximately 18%. This growth trajectory mirrors the company's strong earnings performance during the post-pandemic housing boom, while the recent plateau at $0.25 suggests a more measured approach as the housing market normalizes.

Dividend Sustainability and Payout Ratio

KB Home's dividend appears highly sustainable by virtually every conventional metric. The company's payout ratio — dividends per share divided by diluted earnings per share (EPS) — stood at approximately 16% for the fiscal year ended November 2025, based on diluted EPS of $6.15 and an annual dividend of $1.00. On a trailing twelve-month basis, the payout ratio has been reported as low as 11%–13%, depending on the data source. This means the company retains more than 80% of its earnings for reinvestment, debt management, and share buybacks. Free cash flow coverage is equally reassuring: over the trailing twelve months, KB Home generated approximately $494 million in free cash flow, while total dividend payments consumed roughly $67 million, or about 13%–14% of free cash flow. The company also ended its most recent fiscal year with a debt-to-equity ratio of approximately 52%, a manageable level for a cyclical homebuilder, and held $201.8 million in cash against no significant near-term debt maturities. This financial flexibility provides a wide margin of safety around the dividend, even if earnings compress during a housing slowdown.

Dividend Compared to Industry Peers

Within the U.S. homebuilding industry, KB Home's dividend profile compares favorably. DHI (D.R. Horton), the largest U.S. homebuilder by volume, offers a dividend yield around 1.15%–1.26% with a similar payout ratio. LEN (Lennar) yields approximately 1.06%–2.25%, though its payout ratio is somewhat higher at around 29%–32%. PHM (PulteGroup) yields roughly 0.58%–0.86%, the lowest among major peers. TOL (Toll Brothers) yields around 0.74%. Among mid-cap builders, MTH (Meritage Homes) offers a higher yield near 2.57%, while NVR (NVR, Inc.) pays no regular dividend at all. KB Home's 1.67% yield places it in the upper tier of large homebuilders, and its low payout ratio suggests more headroom for future increases compared to peers with higher payout ratios. The company's 40-year payment streak also distinguishes it as one of the most reliable dividend payers in a historically cyclical industry.

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Is This Stock Attractive for Dividend Investors?

KB Home may appeal most to dividend growth investors and long-term, total-return-oriented investors rather than those seeking high current income. With a yield of approximately 1.67%, the stock does not compete with high-yield alternatives such as REITs, business development companies (BDCs), or utility stocks. However, the combination of a 40-year payout streak, a very low payout ratio, and strong free cash flow coverage makes KB Home a compelling candidate for investors who prioritize dividend reliability and growth potential over immediate yield. The company's aggressive share buyback program — which has meaningfully reduced the diluted share count in recent years — further enhances per-share metrics and signals management's broader commitment to returning capital to shareholders. That said, homebuilding is a cyclical industry, and KB Home's earnings and cash flow are sensitive to mortgage rates, housing affordability, and broader economic conditions. A prolonged housing downturn could slow or pause dividend growth, though the conservative payout ratio provides a substantial cushion. For investors comfortable with cyclical exposure and seeking a modest but well-protected dividend with a track record of rapid growth, KB Home warrants attention within a diversified income portfolio.

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