PulteGroup (PHM) will raise its quarterly dividend by 22.2 percent to $0.11 per share in the fourth quarter of 2018.

The increased dividend is payable January 3, 2019, to shareholders of record at the close of business on December 18, 2018.

“The Board’s decision to increase the dividend reflects the strength of PulteGroup’s balance sheet and the strong cash flow the business continues to generate,” said Ryan Marshall, President and CEO of the Company. “Raising the dividend also aligns with management’s stated capital allocation priorities and its focus on creating long-term value for our shareholders.”

A new annualized dividend rate of 44 cents per share yields 1.7% at a stock price of $26.23.

PulteGroup, Inc., based in Atlanta, Georgia, is one of America's largest homebuilding companies with operations in approximately 50 markets throughout the country. The company's brands include Centex, Pulte Homes, Del Webb, DiVosta Homes and John Wieland Homes and Neighborhoods.