Meritage Homes Raises Dividend 12% to $0.48; Truist Starts Buy with $90 Target
Meritage Homes’ board approved a $0.48 quarterly dividend, a 12% increase from $0.43, payable March 31. Truist initiated coverage with a Buy rating and $90 target, citing its spec-only model, after Q4 posted adjusted EPS of $1.67 versus $1.53 estimate while revenue of $1.41B trailed $1.49B.
1. Dividend Increase Approved
Meritage Homes’ board of directors approved a quarterly dividend of $0.48 per share, marking a 12% increase from last year’s $0.43. The dividend will be paid on March 31 to shareholders of record as of March 17.
2. Truist Initiates Buy Coverage
On March 4, Truist Securities initiated coverage on Meritage Homes with a Buy rating and set a $90 price target, highlighting the company’s spec-only approach as a key driver of cost efficiency and competitive positioning in the entry-level home market.
3. Q4 2025 Earnings Performance
In the fourth quarter of fiscal 2025, Meritage reported adjusted EPS of $1.67, beating the consensus estimate of $1.53, while revenue declined to $1.41 billion against a $1.49 billion forecast, reflecting a 7% drop in home closings and a 5% decrease in average selling price.
4. Company Background and Market Position
Meritage Homes ranks among the top five U.S. homebuilders, targeting entry-level and first move-up buyers with energy-efficient, affordable spec homes. The company has delivered over 210,000 homes during its 40-year history.