Toll Brothers (TOL) DIvidends Date & History

Key Takeaways

• Current dividend: $0.25 per share (quarterly), $1.00 annualized.
• Dividend yield around 0.7% – modest but stable for a luxury‑home builder.
• Payout ratio below 10% of earnings, indicating strong cash‑flow coverage.
• Dividend has risen roughly 10% + each year for the past three years.
• Yield is lower than most construction peers, but the low payout ratio offers upside potential.

Dividend Overview

Toll Brothers, Inc. (TOL) pays a quarterly cash dividend. The most recent board approval (April 2025) set the dividend at $0.25 per share, delivering an annual dividend of $1.00. With a share price near $140, the trailing twelve‑month (TTM) dividend yield sits at roughly 0.7%. The company positions itself as a modest‑yield, dividend‑growth stock rather than a high‑income vehicle, emphasizing consistent increases and a very low payout ratio.

Dividend History and Growth

Since initiating a dividend in 2017, Toll Brothers has steadily increased its payout. After a modest start at $0.08 per share, the dividend rose to $0.21 in 2023 and $0.23 in 2024, followed by the most recent $0.25 level in 2025. Over the last three years the compound annual growth rate (CAGR) has been about 10.6%, reflecting a disciplined policy of raising the dividend each year while the company expands its luxury‑home portfolio.

Dividend Sustainability and Payout Ratio

The dividend’s sustainability is supported by a payout ratio of roughly 7% of trailing earnings (Simply Wall St) and about 8% of free cash flow (MarketBeat). Earnings per share (EPS) have remained above $3.5 in recent years, while operating cash flow exceeds $2 billion annually. Debt levels are manageable for a home‑building firm, with a net debt‑to‑EBITDA ratio near 2.0×, leaving ample capacity to maintain or raise the dividend.

Dividend Compared to Industry Peers

Toll Brothers’ yield is lower than most peers, but its payout ratio is also the most conservative, giving the dividend a higher margin of safety and room for future growth.

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Is This Stock Attractive for Dividend Investors?

Toll Brothers may appeal to investors who prioritize dividend sustainability and modest growth over high yield. The low payout ratio and strong cash‑flow coverage make it suitable for dividend‑growth investors who can tolerate a lower current yield in exchange for potential future increases. Income‑focused investors seeking higher yields may look to peers like D.R. Horton or PulteGroup, but those stocks carry higher payout ratios and slightly greater risk of cuts. Overall, Toll Brothers fits a balanced, long‑term portfolio that values dividend reliability and the upside of a premium‑home builder.

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