Was a question in the conference call that asked what they planned to do with dividends, stock buy backs ect. Stuart Miller said they would see how the legislation goes on the no dividends, and look at it at the time. Said they always look at dividends and stock buybacks at part of their evaluation where to best put their capital, and they will keep doing so in the future. I think they think the homebuilding market is so good that now they are putting most of their capital there. They last bought back their stock in 2000 when their trailing p/e was 6. They bought back 9.8 million shares in like 3 months if my memory is correct. I think they do a pretty good job of investing there capital. Say they have had a 20% return the past 3 years and think they can do that in the future.
LEN is trying to use its profits to build a national and possibly dominent brand name. This has never existed but the potential economies of scale could be significant. Also Wall Street has always put a substantial premium on both leaders in thier own field and stocks that posesses well known brands. More impotantly, up till now, paying dividends has been a losing strategy from the standpoint of taxation. Hux