Persimmon reveals plans to pay extra dividend

Persimmon (LON: PSN) revealed in its latest trading update that it plans to a second interim dividend thanks to strong trading.

The housebuilder plans to pay an interim dividend of 70p per share in December after the group resilient demand for new homes and secured £1.4bn of sales for future years.

In the period between July 1 and November 9, the group average private weekly sales rates per site was 38% higher than the year previously.

Chief executive Dean Finch said: “Persimmon continues to perform robustly despite the significant challenges presented by the Covid-19 pandemic and we are currently on course to deliver a good result for 2020.”

Head of Markets at Interactive Investor, Richard Hunter, said: “Persimmon is playing the hand which it has been dealt prudently and profitably.

“Returning demand meant that during the summer, the company was indeed able to make hay while the sun shone.

“The summer surge, partially driven by some pent-up demand, has resulted in a strengthening of the company’s financial position, with net cash of £960 million comparing to £829 million at the half-year results.”

On Monday, rival housebuilder Taylor Wimpey also said that it expects this year’s financial results to be at the upper end of expectations and remains confident about next year.

Shares surged on Monday morning as the housing market continues to be resilient after reopening after the second quarter shutdown.

Persimmon shares (LON: PSN) are down 3.14% to 2.694,40 (0949GMT).

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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.