D.R. Horton Raises Quarterly Dividend 11.1% to $0.50

D.R. Horton raised its quarterly cash dividend 11.1% to $0.50 per share from $0.45. The stock is scheduled to trade ex-dividend on November 12, 2026, and the payment is due November 19, 2026.

Why the dividend changed

The homebuilder tied the increase to its financial position and cash generation. Executive Chairman David Auld said the board acted “based on our solid financial position and cash flow.” The company characterized fiscal 2027 as its thirteenth consecutive year of dividend growth, one year longer than the completed-year streak because the new fiscal year has begun. D.R. Horton announced the increase with its fiscal 2026 results.

The dividend rose despite weaker earnings. Fiscal 2026 net income fell 19% to $2.9 billion, while fourth-quarter net income fell 18% to $741.8 million. Full-year homebuilding revenue declined 3%, and homebuilding pretax income fell 17%. Fourth-quarter net sales orders decreased 7%, while the cancellation rate increased to 23% from 20%. These results indicate that the increase reflects capital-allocation capacity rather than an acceleration in current profit growth. The fiscal 2026 release contains the operating results and management commentary.

Cash generation and the balance sheet provided support. D.R. Horton generated $3.5 billion of operating cash flow in fiscal 2026 and ended September with $7.2 billion of liquidity. Debt represented 20.8% of total capital. The company also repurchased $3.6 billion of shares during the year, reducing shares outstanding 8%, showing that the dividend remains one part of a broader capital-return program.

The operating backdrop remains difficult. Management said rising mortgage rates, affordability constraints and cautious consumer sentiment pressured demand during the fourth quarter. It expects sales incentives to remain elevated during fiscal 2027, depending on market conditions. The average long-term US mortgage rate was 7.24% on October 29 after recently reaching its highest level in nearly three years, according to The Associated Press.

Initial fiscal 2027 guidance calls for consolidated revenue of $30.0 billion to $32.0 billion, homebuilding closings of 79,000 to 84,000 homes and operating cash flow of approximately $3.5 billion. The cash-flow outlook helps explain why the board raised the payout while management simultaneously prepared for continued demand and margin pressure.

Dividend track record

The recent payment history shows a regular annual step-up. D.R. Horton paid $0.40 per quarter from November 12, 2024, through August 7, 2025. Four payments of $0.45 followed from November 13, 2025, through August 6, 2026. The new $0.50 rate continues that pattern without changing the quarterly schedule.

Full-year distributions increased from $0.73 per share in 2020 to $0.83 in 2021, $0.93 in 2022, $1.05 in 2023, $1.30 in 2024 and $1.65 in 2025. Annual growth accelerated to 23.8% in 2024 and 26.9% in 2025. Over five years, the dividend recorded 18.0% annual growth.

The company says the latest increase begins its thirteenth consecutive year of dividend growth. That record follows the last annual cut in 2009, placing the current streak entirely within the expansion that followed the housing and financial crisis.

Is the dividend covered?

The dividend consumes 17% of earnings. That low payout ratio means most profit remains available for land, construction, debt obligations, share repurchases and other corporate needs before the company has to rely on additional financing to fund the distribution.

SmarterDividends rates the dividend A with a safety score of 84. An A denotes a very safe dividend, the category covering scores from 80 to 100. The earnings payout ratio, cash generation and balance-sheet liquidity support that assessment, although homebuilding earnings remain exposed to mortgage rates, incentives and housing demand.

Yield and valuation

At a share price of $146.53, D.R. Horton has a forward yield of 1.26%. That is below the Consumer Cyclical sector median forward yield of 2.51%. The income profile therefore depends more on continued dividend growth than on a high starting yield. Based on the listed annual dividend of $1.80 per share, 100 shares provide $180.00 of annual income.

The stock has recorded a 7.3% loss over one year. SmarterDividends estimates fair value at $179.53 and classifies the shares as undervalued, representing 22% upside to that estimate. The fair-value figure is a valuation reference, not a forecast of the share price.

What to watch

The immediate calendar items are the November 12, 2026, ex-dividend date and the November 19, 2026, payment. D.R. Horton plans to report fiscal first-quarter results on January 19, 2027, when investors can compare orders, cancellations, incentives, margins and cash generation with the company’s initial guidance. The scheduled reporting date appears in the fiscal 2026 release.

Future declarations remain subject to board approval. D.R. Horton’s latest Form 10-Q says the board weighs future earnings, cash flows, capital requirements, financial condition and general business conditions. Those factors, particularly operating cash flow and the cost of buyer incentives, will provide the clearest context for the next dividend decision.