Persimmon (LON:PSN) revealed in its latest trading update that it plans to make its second interim dividend thanks to strong trading.
House builders plan to pay a 70p interim dividend per share in December after the group captures resilient demand for new homes and secures future sales of £1.4 billion.
For the period from July 1st to November 9th, the average private weekly sales rate by group was 38% higher than in previous years.
CEO Dean Finch said: “Despite the key challenges presented by the Covid-19 pandemic, Persimmon continues to function steadily and is currently on track to deliver good results in 2020.”
Market head at Richard Hunter, an interactive investor, said:
“Returning demand meant that the company could actually make hay during the summer while the sun was shining.
“The summer surge was driven by some upsurge in demand, resulting in a strengthening of the company’s financial position.
On Monday, rival housebuilder Taylor Wimpy said he expects financial results this year to be at the top of expectations and is confident next year.
Stocks surged Monday morning as the housing market continues to be resilient after reopening after the second quarter shutdown.
Persimmon strains (LON:PSN) fell 3.14% to 2.694,40 (0949GMT).
