FOR - D.R. Horton: Long-Term Dividend Growth - Just Getting Started

2024-04-29 10:00:00 ET

Summary

• D.R. Horton, an American home construction company, is now a $47 billion (by market cap) homebuilding major.
• D.R. Horton increased its dividend for 10 consecutive years, with a five-year dividend growth rate of 14.9%.
• With a payout ratio of only 8.6%, the company has plenty of room for more dividend growth and compounding over the coming years.
• D.R. Horton advanced its revenue from $8 billion in FY 2014 to $35.5 billion in FY 2023 with a compound annual growth rate of 18%.

D.R. Horton, Inc. ( DHI ) is an American home construction company. Founded in 1978, D.R. Horton is now a $47 billion (by market cap) homebuilding major that employs over 13,000 people. By volume, D.R. Horton is the largest homebuilder in the United States. The company operates in 119 different markets across 33 states.

D.R. Horton has three key tailwinds working in its favor. First, there's a structural imbalance between supply and demand. It's been estimated that the US has a supply deficit of somewhere around six million homes. For many years, and for many reasons, annual US home production has been consistently short of what's necessary to meet demand. This cumulative deficit, which has been years in the making, is now massive....

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