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Meritage Homes Corp (MTH) Boosts Dividends As Its Spec-Only Approach Draws Praise

Meritage Homes Corp (NYSE:MTH) is among the best homebuilder stocks to buy according to hedge funds. On March 4, Truist Securities initiated coverage on Meritage Homes Corp (NYSE:MTH) stock with a Buy rating and a price target of $90.

For this bullish view on Meritage Homes, the market research firm cited the homebuilder’s spec-only approach to business as a key factor. Notably, Meritage Homes doesn’t offer customized options to home buyers but builds everything to spec. This approach has a cost-savings benefit, according to Truist.

According to the firm, the Meritage Homes stock is a good deal for investors seeking exposure to the lower-end of the home price spectrum.

​Separately, on February 19, Meritage Homes Corporation (NYSE:MTH) announced that its 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, 2026, to shareholders of record as of March 17, 2026.

​In its Q4 2025 earnings report, Meritage Homes posted adjusted EPS of $1.67, topping the consensus estimate of $1.53. However, revenue of $1.41 billion missed the consensus projection of $1.49 billion. The company said it operated in a challenging environment during the quarter. It was a period marked by a 7% drop in home closings and a 5% decline in the average selling price on closings.

​Meritage Homes Corp (NYSE: MTH) is among the top five homebuilders in the US. The company targets entry-level and first move-up home markets. It focuses on offering energy efficient and affordable homes to consumers. Meritage says it has delivered more than 210,000 homes in the course of its 40-year history.

While we acknowledge the potential of MTH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MTH and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 12 Best Stocks to Buy and Hold for the Next 2 Years.

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