May 30, 2025 a 03:30 pm
DHI: Dividend Analysis - D.R. Horton, Inc.
D.R. Horton, Inc. offers a robust dividend profile with a consistent payout strategy. Despite its moderate dividend yield, the company's impressive dividend history and stability suggest reliability in shareholder returns. However, the relatively low payout ratios indicate substantial potential for either reinvestments or future dividend growth.
📊 Overview
The following table provides a succinct overview of key dividend metrics for D.R. Horton, Inc. The remarkable history of dividend payments underscores steady financial governance, while the substantial market capitalization positions the company favorably within its industrial sector.
| Attribute | Value |
|---|---|
| Sector | Industrials |
| Dividend Yield | 1.18 % |
| Current Dividend Per Share | 1.20 USD |
| Dividend History | 30 years |
| Last Cut/Suspension | None |
🗣️ Dividend History
The dividend history of D.R. Horton reflects a long-standing commitment to returning value to shareholders. This historical consistency is key for investors seeking stable income streams. The following chart depicts their dividend history, indicating no recent cuts or suspensions.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.80 |
| 2024 | 1.30 |
| 2023 | 1.05 |
| 2022 | 0.925 |
| 2021 | 0.825 |
📈 Dividend Growth
The annual dividend growth rates are crucial for assessing the potential increase in shareholder returns over time. Notably, D.R. Horton has exhibited moderate growth, suggesting a strategic approach to dividend increases aligned with sustainable financial performance.
| 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
Payout ratios provide insights into how well earnings and cash flows support dividend payments. A payout ratio based on earnings of 8.73% and a free cash flow payout ratio of 13.27% indicate a conservative distribution policy supportive of future increases.
| Key Figure | Ratio |
|---|---|
| EPS-based | 8.73 % |
| Free Cash Flow-based | 13.27 % |
These low payout ratios suggest a conservative approach to maintaining dividend stability through various economic cycles.
📑 Cashflow & Capital Efficiency
The assessment of cash flow dynamics and capital efficiency is vital for projecting a company’s sustained profitability and dividend-paying capacity. D.R. Horton’s recent performance in these areas deserves particular attention for future cash flow expectations.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 1.75% | 11.35% | 3.22% |
| Earnings Yield | 24.73% | 12.96% | 7.57% |
| CAPEX to Operating Cash Flow | 26.38% | 3.45% | 7.55% |
| Stock-based Compensation to Revenue | 0.31% | 0.31% | 0.32% |
| Free Cash Flow / Operating Cash Flow Ratio | 73.62% | 96.55% | 92.45% |
The cash flow figures indicate consistent capital efficiency and capacity for reinvestment into growth initiatives or increased shareholder distributions.
📉 Balance Sheet & Leverage Analysis
An analysis of the balance sheet and leverage ratios reveals D.R. Horton’s financial stability and debt management. Low leverage ratios and strong coverage ratios highlight the company's prudent financial management strategy.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 31.28% | 22.45% | 23.59% |
| Debt-to-Assets | 19.99% | 15.64% | 16.54% |
| Debt-to-Capital | 23.83% | 18.33% | 19.09% |
| Net Debt to EBITDA | 0.46 | 0.20 | 0.23 |
| Current Ratio | 5.92 | 6.62 | 9.68 |
| Quick Ratio | 1.10 | 1.48 | 2.74 |
| Financial Leverage | 1.56 | 1.44 | 1.43 |
D.R. Horton demonstrates strong liquidity and low levels of financial leverage, supporting its ability to weather economic variability.
✅ Fundamental Strength & Profitability
Examining fundamental strength and profitability metrics offers insights into a firm's sustainable economic advantages and competitive positioning. D.R. Horton exhibits commendable returns on equity and assets, supported by solid margin profiles.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 30.20% | 20.91% | 18.79% |
| Return on Assets | 19.30% | 14.57% | 13.17% |
| Return on Invested Capital | 18.33% | 14.63% | 14.35% |
| Net Profit Margin | 17.50% | 13.38% | 12.92% |
| Gross Margin | 31.37% | 26.37% | 25.91% |
| EBIT Margin | 22.61% | 17.21% | 16.13% |
| EBITDA Margin | 22.85% | 17.47% | 17.31% |
| R&D to Revenue | 0% | 0% | 0% |
D.R. Horton demonstrates strong foundational metrics, reflecting efficient operational practices and competitive stability.
📉 Price Development
🚥 Dividend Scoring System
Our dividend scoring system evaluates D.R. Horton across eight stringent categories to derive a comprehensive assessment of their dividend strength and sustainability.
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Overall Score: 36/40
💡 Rating
In summary, D.R. Horton, Inc. demonstrates strong financial health and consistent dividend policies, making it a reliable choice for income-focused investors. The robust payout ratios, combined with stable growth and a resilient balance sheet, confer confidence in the sustainability of its dividend strategy.