April 19, 2025 a 07:30 am
DHI: Dividend Analysis - D.R. Horton, Inc.
D.R. Horton, Inc., a leader in residential home construction, presents an intriguing dividend profile backed by its consistent growth performance within the industry. With a steady dividend history stretching over three decades, it suits long-term income-focused investors. The firm showcases promising indicators of dividend sustainability, augmented by a healthy financial posture and moderate payout ratios.
📊 Overview
The following is a comprehensive presentation of D.R. Horton, Inc.'s dividend-related attributes and its context within the sector.
| Attribute | Value |
|---|---|
| Sector: | Construction |
| Dividend yield: | 1.24 % |
| Current dividend per share: | 1.20 USD |
| Dividend history: | 30 years |
| Last cut or suspension: | None |
📈 Dividend History
Understanding past dividends helps in predicting future income streams. This historical perspective showcases the company's stability and reliability in returning value to shareholders.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.80 |
| 2024 | 1.30 |
| 2023 | 1.05 |
| 2022 | 0.925 |
| 2021 | 0.825 |
📉 Dividend Growth
Examining the dividend growth rate helps assess the potential for future income increases. D.R. Horton features moderate growth, indicating a balanced approach to rewarding shareholders while retaining capital for expansion.
| Time | Growth |
|---|---|
| 3 years | 16.37 % |
| 5 years | 15.77 % |
The average dividend growth is 15.77 % over 5 years. This shows moderate but steady dividend growth.
🗣️ Payout Ratio
A low payout ratio often indicates the ability to sustain or increase dividend payouts. D.R. Horton demonstrates a robust coverage with low levels, indicating dividends are well-supported by earnings and cash flow.
| Key Figure | Ratio |
|---|---|
| EPS-based | 8.29 % |
| Free cash flow-based | 13.16 % |
The payout ratio is traditionally conservative with 8.29 % (EPS) and 13.16 % (FCF), suggesting ample room for future dividend increases.
✅ Cashflow & Capital Efficiency
Strong cash flow management is vital for sustaining dividends and capital investments. D.R. Horton's capital efficiency metrics underpin its strategic investment capabilities and fiscal prudence.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.22% | 11.35% | 1.75% |
| Earnings Yield | 7.57% | 12.96% | 24.73% |
| CAPEX to Operating Cash Flow | 7.55% | 3.45% | 26.38% |
| Stock-based Compensation to Revenue | 0.32% | 0.31% | 0.31% |
| Free Cash Flow / Operating Cash Flow Ratio | 92.45% | 96.55% | 73.62% |
The company's cash flow stability and capital efficiency are evidenced by its strong free cash flow yield and balanced capital spending.
⚠️ Balance Sheet & Leverage Analysis
A solid balance sheet and responsible debt management are essential for long-term sustainability. D.R. Horton maintains a strong financial position with manageable leverage.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 23.38% | 22.45% | 31.28% |
| Debt-to-Assets | 16.39% | 15.64% | 19.99% |
| Debt-to-Capital | 18.95% | 18.33% | 23.83% |
| Net Debt to EBITDA | 0.35 | 0.20 | 0.46 |
| Current Ratio | 4.78 | 6.62 | 5.92 |
| Quick Ratio | 1.36 | 1.48 | 1.10 |
| Financial Leverage | 1.43 | 1.44 | 1.56 |
The analyzed data suggests D.R. Horton has solid financial fundamentals with sustainable debt levels and robust liquidity ratios. The moderation in financial leverage supports ongoing operations and future growth.
✅ Fundamental Strength & Profitability
Profitability ratios indicate the firm’s ability to generate income relative to revenue, assets, and equity. D.R. Horton consistently highlights strong profit margins along with a sustainable growth trajectory.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 18.79% | 20.91% | 30.20% |
| Return on Assets | 13.17% | 14.57% | 19.30% |
| Margins: Net | 12.92% | 13.38% | 17.49% |
| Margins: EBIT | 16.13% | 17.21% | 22.61% |
| Margins: EBITDA | 17.31% | 17.47% | 22.85% |
| Margins: Gross | 25.91% | 26.37% | 31.37% |
| Research & Development to Revenue | 0% | 0% | 0% |
D.R. Horton exhibits a strong foundation of profitability and economic balance, maintaining considerable return metrics which ensure long-term competitiveness and market presence.
📉 Price Development
🗣️ Dividend Scoring System
| Criterion | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 34/40
🗣️ Rating
D.R. Horton, Inc. presents a robust dividend and financial profile, positioning it as an attractive prospect for income-focused investors. Given its consistent dividend history, healthy financial metrics, and ongoing strategic growth, the company earns a "Strong Buy" recommendation for those seeking stable and growing dividend income.