DR Horton (DHI) DIvidends Date & History

Key Takeaways

• D.R. Horton (DHI) pays a quarterly dividend of $0.45 per share, or $1.80 annually, translating to a dividend yield of roughly 1.2%.
• The dividend payout ratio is approximately 16–17% of earnings, leaving substantial room for continued increases.
• DHI has raised its dividend for more than a decade, with an annualized five-year dividend growth rate of roughly 17%.
• The payout is supported by strong free cash flow and is complemented by an aggressive share repurchase program.
• The stock is best suited to dividend growth investors rather than investors seeking high current income.

Dividend Overview

D.R. Horton, Inc. (DHI), the largest homebuilder in the United States, pays a cash dividend on a quarterly basis. Its most recent quarterly dividend is $0.45 per share, bringing the annualized payout to $1.80 per share and producing a dividend yield of approximately 1.2% at recent price levels. The company has an ex-dividend date of August 6, 2026, with the corresponding payment made on August 13, 2026.

Given its relatively low yield and rapid rate of dividend growth, DHI is best characterized as a dividend growth stock rather than a high-yield or income-focused investment. Management has consistently prioritized a modest, steadily rising dividend alongside large share buybacks, reflecting a disciplined approach to returning capital to shareholders while reinvesting heavily in the core homebuilding business.

Dividend History and Growth

D.R. Horton has a long history of returning cash to shareholders, with dividend payments dating back to 1997. In recent years, the company has established a strong record of consecutive annual increases, now exceeding a decade of uninterrupted dividend growth. The dividend has been lifted in consistent, meaningful steps—for example, from $0.30 to $0.40 per quarter in 2024, and then to $0.45 per share in late 2025, a 13% increase over the prior payment.

The pace of growth has been especially notable. Over the past five years, DHI has grown its dividend at an annualized rate of roughly 17%, while the ten-year annualized growth rate approaches 18%. This trajectory reflects both the company's expanding earnings and a deliberate strategy to keep the dividend growing at a faster clip than the broader market average, even as the yield itself remains modest.

Dividend Sustainability and Payout Ratio

D.R. Horton's dividend appears highly sustainable. The company pays out only about 16–17% of its earnings in dividends, a level that is well below the thresholds commonly associated with dividend risk. Measured against operating cash flow, the payout is similarly conservative at roughly 15%, indicating that the dividend is comfortably covered by the cash the business actually generates.

This low payout ratio is supported by a robust financial position. D.R. Horton maintains a strong balance sheet and generates substantial free cash flow (cash remaining after capital expenditures), which provides a wide margin of safety for the dividend even if housing demand softens. Because management deliberately keeps the payout ratio low, the company retains ample flexibility to continue raising the dividend, fund share repurchases, and invest in land and community development without stretching its finances.

Dividend Compared to Industry Peers

Within the homebuilding sector, D.R. Horton's dividend profile stands out for its combination of a competitive yield and rapid growth. Its yield of approximately 1.2% is generally higher than several large peers—for example, Lennar (LEN), PulteGroup (PHM), and Toll Brothers (TOL) typically offer yields below or near 1%—while NVR (NVR) does not pay a regular cash dividend at all. KB Home (KBH) carries a comparable yield, but few rivals match DHI's decade-plus streak of increases at a double-digit annualized growth rate.

Investors should note, however, that homebuilder dividend yields remain low relative to the broader stock market and to traditional income sectors. DHI's appeal within its peer group lies less in current income and more in the durability and speed of its dividend growth.

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Is This Stock Attractive for Dividend Investors?

D.R. Horton is most compelling for dividend growth investors and long-term, total-return-oriented shareholders rather than investors who depend on high current income. Its roughly 1.2% yield is modest, so the stock will not satisfy investors seeking immediate cash flow from dividends alone. However, the company's exceptionally low payout ratio, strong free cash flow, and track record of double-digit annual dividend increases make it a notable candidate for those prioritizing growing income over time.

More conservative investors may also find comfort in the dividend's wide margin of safety: even in a housing downturn, the low payout ratio suggests the dividend could be maintained or continue rising. Conversely, pure income investors or those comparing DHI to higher-yielding sectors such as utilities or REITs (real estate investment trusts) may find the yield insufficient. Overall, DHI fits best within a diversified, long-term portfolio where dividend growth and capital appreciation are the primary objectives rather than immediate income.

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