Economy Be sure to check out Toll Brothers, Inc. (NYSE:...

Be sure to check out Toll Brothers, Inc. (NYSE: TOL) before an ex-dividend is paid out

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<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Toll Brothers, Inc. (NYSE: TOL) stock is traded ex dividend in 3 days. If you buy the stock on or after April 8, you will not be entitled to this dividend if it is paid on April 24. “Data reactid =” 28 “>Toll Brothers, Inc. (NYSE: TOL) stock is traded ex dividend in 3 days. If you buy the stock on or after April 8, you will not be entitled to this dividend if it is paid on April 24.

Toll Brothers’ next dividend payment is $ 0.11 per share. The company paid a total of $ 0.44 per share for the past 12 months. Total dividend payments last year show that Toll Brothers has a 2.5% lagging return on the current share price of $ 17.85. Dividends are an important source of income for many shareholders, but the health of the company is critical to maintaining these dividends. So we have to check whether the dividend payments are covered and whether profits are increasing.

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Check out our latest analysis for Toll Brothers “data-reactid =” 30 “> Check out our latest analysis for Toll Brothers

Dividends are usually paid out of company profits. If a company pays more dividends than it does profits, the dividend cannot be sustainable. Toll Brothers only pays 12% of its profit after tax, which is pleasantly low and leaves plenty of room to breathe in the event of undesirable events. However, cash flows are even more important than profits when assessing a dividend. So we need to check that the company has generated enough cash to pay its payout. 38% of free cash flow was distributed as dividends, which is a comfortable payout ratio for most companies.

It is positive to see that Toll Brothers dividend is covered by both profit and cash flow, as this is generally a sign that the dividend is sustainable and a lower payout ratio usually suggests a larger margin of safety, before the dividend is cut.

Click here to see the company’s payout ratio and analyst estimates of future dividends.

NYSE: TOL Historical Dividend Yield April 4, 2020

NYSE: TOL Historical Dividend Yield April 4, 2020

Have profits and dividends grown?

Shares in companies that generate sustained earnings growth often offer the best dividend prospects, as rising profits make it easier to raise the dividend. If the business goes into a downturn and the dividend is cut, the value of the company could drop sharply. Fortunately for readers, Toll Brothers earnings per share have risen 14% a year over the past five years. The company has managed to increase profits quickly while reinvesting most of the profits within the business. Fast-growing companies that reinvest heavily are tempting from a dividend perspective, especially since they can often increase the payout ratio later.

Many investors evaluate a company’s dividend performance by assessing how much dividend payments have changed over time. For the past three years, Toll Brothers has increased its dividend by an average of 11% a year. It is exciting to see that both earnings and dividends per share have skyrocketed in recent years.

Final takeaway

Does Toll Brothers have what it takes to maintain its dividend payments? Toll Brothers has increased profits quickly and has a conservatively low payout ratio, which means the company is reinvesting heavily in its business. a sterling combination. Overall, we think this is an attractive combination that is worth further research.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Well, while Toll Brothers looks good from a dividend perspective, it's worth it always to be up to date on the risks associated with this stock. To support this we have determined 3 warning signs for Toll Brothers (1 should not be ignored!) You should consider before buying the shares. “Data-reactid =” 51 “> Although Toll Brothers looks good from a dividend perspective, it is always worth keeping up to date with the risks associated with this stock, and we have identified this to help support this 3 warning signs for Toll Brothers (1 should not be ignored!) You should consider before buying the shares.

If you are in the market for dividend stocks, we recommend that you check our list of top dividend stocks with a yield greater than 2% and an upcoming dividend.

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If you find an error that warrants a correction, please contact the publisher at [email protected] This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Simply Wall St has no position in the stocks mentioned.

We would like to provide you with a long-term focused research analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Thank you for reading.“data-reactid =” 57 “>If you find an error that warrants a correction, please contact the publisher at [email protected] This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Simply Wall St has no position in the stocks mentioned.

We would like to provide you with a long-term focused research analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Thank you for reading.

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