Meritage Homes Increases Quarterly Cash Dividend And Announces Systematic Share Repurchase Strategy
Nominating / Governance and Environmental, Social and Sustainability Board Committees Consolidated into Single Committee
SCOTTSDALE, Ariz., Feb. 22, 2024 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH, “Meritage” or the “Company”), the fifth-largest homebuilder in the U.S., today announced that its Board of Directors has declared a quarterly dividend of $0.75 per share, which increased from the $0.27 per share quarterly dividend in 2023. This dividend is payable on March 29, 2024 to shareholders of record as of the close of trading on March 15, 2024.
In addition to the increase in the dividend, Meritage has also instituted a formal share repurchase plan with a minimum buyback commitment of $15 million in each quarter of this fiscal year. In January and February of 2024, the Company has already repurchased its $15 million first quarter amount and an additional $41 million of shares, leaving a minimum of $45 million to be repurchased the rest of the year. Consistent with its dividend policy, Meritage intends to review and renew its share repurchase commitment annually.
“We are committed to balancing growth in the business and returning cash to shareholders in order to continue creating long-term value,” said Phillippe Lord, chief executive officer of Meritage Homes. “Given the strength of our balance sheet and our confidence in our strategy, we are pleased to announce both the meaningful increase to our cash dividend and our systematic share repurchase strategy.”
Our Board of Directors has also approved the consolidation of the Nominating / Governance and Environmental, Social and Sustainability board committees into the new Environmental, Social, Nominating and Governance board committee effective immediately. As part of its annual review, the Board has determined this combination better aligns the overlapping roles and responsibilities. Deb Henretta will chair the new committee.
Forward-Looking Statements
The information included in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include our intention to pay future quarterly dividends and to repurchase additional shares of its common stock during the remainder of 2024. Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Meritage’s business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company’s stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: increases in mortgage interest rates and the availability and pricing of residential mortgages; inflation in the cost of materials used to develop communities and construct homes; cancellation rates; supply chain and labor shortages; the ability of our potential buyers to sell their existing homes; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; the adverse effect of slow absorption rates; legislation related to tariffs; impairments of our real estate inventory; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our ability to obtain financing if our credit ratings are downgraded; our potential exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; the replication of our energy-efficient technologies by our competitors; shortages in the availability and cost of subcontract labor; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations related to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic, and measures that federal, state and local governments and/or health authorities implement to address it; and other factors identified in documents filed by the Company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2023 under the caption “Risk Factors,” which can be found on our website at .
About Meritage Homes Corporation
Meritage Homes is the fifth-largest public homebuilder in the United States, based on homes closed in 2023. The Company offers affordable, energy-efficient entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee.
Meritage Homes has delivered over 175,000 homes in its 38-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, a ten-time recipient of both the U.S. Environmental Protection Agency’s ("EPA") ENERGY STAR® Partner of the Year for Sustained Excellence Award and ENERGY STAR® Residential New Construction Market Leader Award, as well as a three-time recipient of the EPA's 2023 Indoor airPLUS Leader Award.
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Contacts:
Emily Tadano, VP Investor Relations and ESG
(480) 515-8979 (office)
