DR Horton (DHI) DIvidends Date & History

Key Takeaways

• D.R. Horton pays a quarterly dividend of $0.45 per share, equating to an annual dividend of $1.80 and a dividend yield of approximately 1.16%.
• The company has raised its dividend for 11 consecutive years, with a five-year compound annual dividend growth rate of approximately 17%.
• The payout ratio sits at a conservative 16% of trailing earnings, indicating ample room for future dividend increases and strong dividend sustainability.
• D.R. Horton complements its dividend with an aggressive share buyback program, repurchasing $903.6 million in stock during the second quarter of fiscal 2026 alone.
• The combined shareholder yield — including dividends and buybacks — reaches approximately 9.7%, making the total capital return to shareholders far more compelling than the dividend yield alone suggests.

Dividend Overview

DHI — D.R. Horton, Inc., the largest homebuilder in the United States by volume — maintains a quarterly cash dividend policy that reflects disciplined capital allocation rather than an income-first approach. The company currently pays $0.45 per share each quarter, or $1.80 annually, resulting in a dividend yield of roughly 1.16%. The most recent ex-dividend date was May 7, 2026, with the payment distributed on May 14, 2026. D.R. Horton is best characterized as a dividend growth stock rather than a high-yield play. While the headline yield is modest relative to traditional income sectors such as utilities or real estate investment trusts (REITs — companies that own and operate income-producing real estate), the pace of dividend increases has been notably strong. Investors who prioritize payout growth over current income may find the company's dividend profile appealing, especially when viewed alongside its robust share repurchase activity.

Dividend History and Growth

D.R. Horton's modern dividend growth track record dates back to 2014, when the company began consistently raising its quarterly payout. Since then, the dividend has increased every year for 11 consecutive years. The quarterly dividend has climbed from $0.0375 per share in early 2014 to $0.45 per share today — a more than tenfold increase over that period. In August 2024, the quarterly payout rose from $0.30 to $0.40, a 33% increase. The most recent increase came in November 2025, when the dividend was raised again to $0.45 per share, representing a 12.5% hike. The five-year compound annual growth rate (CAGR) for the dividend stands at approximately 17% to 18%, a pace that significantly outpaces inflation and most peers in the consumer cyclical sector. The company also paid a special dividend of $0.15 per share in December 2012, though regular, sustained increases have been the norm for over a decade.

Dividend Sustainability and Payout Ratio

D.R. Horton's dividend appears highly sustainable based on current financial metrics. The payout ratio — dividends per share divided by earnings per share (EPS) — stands at approximately 16% based on trailing twelve-month earnings of $10.82 per share. The cash flow payout ratio is similarly conservative at roughly 14% to 15% of free cash flow. These figures indicate that the company retains the vast majority of its earnings to reinvest in land acquisition, home construction, and share repurchases. During the six months ended March 31, 2026, D.R. Horton paid $261.2 million in cash dividends, a fraction of its net income of over $3 billion during the same period. The company's balance sheet remains solid, with manageable debt levels relative to its equity base. Given the low payout ratio and strong earnings generation, D.R. Horton has substantial headroom to continue raising its dividend even in the event of a housing market slowdown. The dividend is well-covered and presents minimal risk of being cut under normal operating conditions.

Dividend Compared to Industry Peers

Within the U.S. homebuilding industry, D.R. Horton's dividend yield of approximately 1.16% sits slightly above the consumer cyclical sector average of roughly 1.05%. Compared to direct peers, LEN (Lennar Corporation) offers a similar dividend yield in the 1.1% to 1.3% range, while PHM (PulteGroup, Inc.) and TOL (Toll Brothers, Inc.) typically carry yields between 0.8% and 1.1%. NVR (NVR, Inc.) does not pay a regular quarterly dividend. What differentiates DHI from most homebuilder peers is the combination of a double-digit dividend growth rate with an aggressive share repurchase program. The company's total shareholder yield — the sum of dividend yield and net buyback yield — reaches approximately 9.7%, among the highest in the industry. This capital return strategy makes DHI stand out for investors seeking both income and per-share value accretion.

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Is This Stock Attractive for Dividend Investors?

D.R. Horton is best suited for dividend growth investors and total return-oriented investors rather than those seeking high current income. With a yield around 1.16%, the stock will not satisfy investors who depend on dividends for immediate living expenses. However, for long-term investors focused on compounding dividend growth, DHI presents a compelling case: an 11-year streak of annual increases, a five-year dividend CAGR of approximately 17%, and an exceptionally low payout ratio that supports continued double-digit dividend hikes. The aggressive share buyback program further enhances per-share value for long-term holders. Investors should be aware that as a homebuilder, D.R. Horton operates in a cyclical industry sensitive to mortgage rates, employment trends, and consumer confidence. Earnings and dividend growth may decelerate during housing downturns. Conservative dividend investors may prefer stocks with higher yields and longer dividend growth streaks in less cyclical sectors, but those comfortable with moderate cyclical exposure and seeking above-average dividend growth may find DHI's total capital return profile attractive.

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