Bumper dividends have lured investors into ploughing cash into housebuilder shares in recent years. Persimmon (PSN) has been the chief attraction. Its decision to reinstate dividend payments might give shareholders hope that the sector is back on the income trail.
Management has recommended a 40p a share payment after average weekly net reservations per site jumped by almost half since the start of July and the forward order book rose by a fifth. That makes it the second housebuilder, after Berkeley (BKG), to recommence shareholder returns. Management is keeping the decision to reinstate the 110p final dividend under review.
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