DR Horton (DHI) DIvidends Date & History

Key Takeaways

• D.R. Horton offers a quarterly dividend of $0.45 per share, equating to an annual payout of $1.80 and a yield of approximately 1.2%.
• The payout ratio stands at 15.4%, indicating strong sustainability backed by robust earnings and free cash flow (cash generated by operations after capital expenditures).
• The company has achieved 11 consecutive years of dividend growth, with a five-year growth rate of 17.78%.
• Recent ex-dividend date was February 5, 2026, with payment on February 12, 2026.
• Dividend well-covered by earnings per share exceeding $11 and billions in annual free cash flow.
• Modest yield appeals to dividend growth investors in the cyclical homebuilding sector.

Dividend Overview

D.R. Horton, Inc. (DHI), a leading U.S. homebuilder, maintains a quarterly dividend policy, currently paying $0.45 per share. This results in an annual dividend of $1.80 and a trailing yield of about 1.2% based on recent stock prices around $150. The most recent payment followed an ex-dividend date of February 5, 2026, with funds distributed on February 12, 2026. D.R. Horton is viewed as a dividend growth stock rather than a high-yield play, prioritizing consistent increases alongside share repurchases and reinvestment in its core homebuilding operations. The modest yield reflects the company's focus on capital allocation in a cyclical industry, supported by strong balance sheet metrics.

Dividend History and Growth

D.R. Horton has paid dividends quarterly for over three decades, with acceleration in growth during the past decade. Recent history shows progression: $0.25 per share in 2023, rising to $0.30 in 2024, $0.40 in early 2025, and $0.45 since late 2025. This marks 11 straight years of increases, including a 12.5% hike in November 2025 and another to $0.45 annually thereafter. The five-year compound annual growth rate (CAGR) exceeds 17%, outpacing many peers. No cuts have occurred in recent memory, underscoring a strategy of returning capital reliably amid housing market fluctuations.

Dividend Sustainability and Payout Ratio

The dividend's sustainability is robust, with a payout ratio of 15.4%—well below 50%, signaling ample room for growth or resilience during downturns. Earnings per share (EPS) trail 12 months around $11-12 easily cover the $1.80 payout, while free cash flow has averaged billions annually, reaching $3.4 billion in fiscal 2025 operations before capex adjustments. Debt levels remain manageable relative to equity, and the company prioritizes share buybacks ($4.8 billion returned in fiscal 2025), reinforcing financial flexibility. This conservative approach positions the dividend as highly secure in the homebuilding sector.

Dividend Compared to Industry Peers

Among homebuilding peers, D.R. Horton's 1.2% yield is competitive. Lennar (LEN) offers a higher 2.25% yield with $2.00 annually, reflecting a similar growth focus. PulteGroup (PHM) yields 0.82% on $1.04, while Toll Brothers (TOL) trails at 0.74%. NVR pays no dividend, emphasizing buybacks. DHI's profile—modest yield with superior growth—stands out for balanced income in a low-yield industry averaging under 1.5%.

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Is This Stock Attractive for Dividend Investors?

D.R. Horton suits dividend growth investors seeking exposure to the housing market with a safety-first approach. Its low 15% payout ratio and 11-year streak appeal to those prioritizing sustainability over high current income, especially amid interest rate sensitivity in homebuilding. Conservative investors may value the cash flow coverage and consistent raises, which have compounded at 17% over five years. Long-term holders could benefit from total returns blending modest yield, buybacks, and earnings growth tied to U.S. demographics. However, the cyclical nature introduces volatility, making it less ideal for pure income seekers wanting 3%+ yields. Balanced portfolios might allocate modestly, weighing sector risks against defensive dividend traits.

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