July 18, 2025 a 07:46 am
DHI: Dividend Analysis - D.R. Horton, Inc.
The dividend profile of D.R. Horton, Inc. showcases a company with a robust history in consistent dividend payments, reflecting its resilience in the home construction sector. With an impressive 29-year history without dividend cuts, the company exemplifies stability and reliability in shareholder returns. Investors looking for secure yet moderate growth in their dividend portfolio may find D.R. Horton to be an appealing option.
📊 Overview
D.R. Horton, Inc. offers a moderate dividend yield, emphasizing income consistency over aggressive growth. The substantial dividend history highlights its commitment to rewarding shareholders. A conservative sectoral footing in home construction provides an added layer of safety.
| Sector | Dividend yield | Current dividend per share | Dividend history | Last cut or suspension |
|---|---|---|---|---|
| Home Construction | 1.18% | 1.20 USD | 29 years | None |
🗣️ Dividend History
The consistent dividend payments by D.R. Horton highlight its resilience and stable cash flows, crucial traits for long-term investors seeking dependable income. The absence of dividend cuts over 29 years underscores its financial robustness even during economic downturns.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.80 |
| 2024 | 1.30 |
| 2023 | 1.05 |
| 2022 | 0.925 |
| 2021 | 0.825 |
📈 Dividend Growth
D.R. Horton's dividend growth is a testament to its increasing financial strength. The moderate 3-year and 5-year growth rates suggest a sustainable approach, balancing capital reinvestments with shareholder distributions.
| 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
The payout ratio is a critical indicator of dividend sustainability. D.R. Horton's low EPS payout ratio suggests room for maneuver, indicating that current dividend levels are well-covered by earnings.
| Key figure | Ratio |
|---|---|
| EPS-based | 8.73% |
| Free cash flow-based | 13.27% |
Both ratios imply that the dividend payout is relatively low, offering flexibility and a buffer against potential income fluctuations.
Cashflow & Capital Efficiency
Assessing cash flow and capital efficiency measures the company's ability to generate liquidity and sustain capital expenditures. D.R. Horton exhibits a healthy free cash flow yield, underscoring its ability to support ongoing operations and dividends.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 1.74% | 11.35% | 3.22% |
| Earnings Yield | 24.73% | 12.96% | 7.57% |
| CAPEX / Operating Cash Flow | 26.38% | 3.45% | 7.55% |
| Stock-based Compensation / Revenue | 0.31% | 0.31% | 0.32% |
| Free Cash Flow / Operating Cash Flow Ratio | 73.62% | 96.55% | 92.45% |
Overall, D.R. Horton demonstrates strong cash flow dynamics, critical for dividend payments and reinvestments.
Balance Sheet & Leverage Analysis
An analysis of balance sheet and leverage provides insights into the company's debt management and financial flexibility. D.R. Horton maintains a prudent leverage stance, supporting its creditworthiness and investment potential.
| Metric | 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 | 46.09% | 19.71% | 22.83% |
| 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 showcases a balanced debt management approach, promoting long-term financial sustainability.
Fundamental Strength & Profitability
Analyzing profitability metrics reveals a company's operational efficiency and value generation. D.R. Horton consistently delivers strong returns on equity and assets, aligning with investor growth expectations.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 30.20% | 20.91% | 18.79% |
| Return on Assets | 19.30% | 14.57% | 13.17% |
| Net Margin | 17.50% | 13.38% | 12.92% |
| EBIT Margin | 22.61% | 17.21% | 16.13% |
| EBITDA Margin | 22.85% | 17.47% | 17.31% |
| Gross Margin | 31.37% | 26.37% | 25.91% |
| Research & Development / Revenue | 0% | 0% | 0% |
These metrics affirm the strong profitability framework and efficient capital utilization of D.R. Horton.
Price Development
⚠️ Dividend Scoring System
| Criterion | Points | Score |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 35 out of 40
🏆 Rating
D.R. Horton, Inc. exhibits a robust dividend profile that merges stability with gradual growth. With an impressive dividend history and low payout ratios, it offers both security and potential for income-focused investors. The comprehensive financial health and management acumen of D.R. Horton make it a strong candidate for portfolios that prioritize reliable dividend income with moderate capital appreciation prospects.