D.R. Horton - A Homebuilding Dividend Wildcard

Mar. 23, 2021 4:45 PM ETD.R. Horton, Inc. (DHI) StockDHI1 Comment

Summary

  • D.R. Horton is not only America's biggest home builder but also the best long-term investment in this industry.
  • The company is a market leader in key housing markets and has reported rapidly rising new orders and a long-term uptrend in sales and earnings.
  • While the dividend yield is low, management has the ability to maintain high dividend growth thanks to strong free cash flow.

D.R. Horton Neubau während Coronavirus
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If there's anything I've learned over the past 10 years, it's that homebuilding stocks are tricky. Besides the obvious fundamental differences between home builders, they are driven by rates, economic sentiment, in general, and inflation as this impacts

This article was written by

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Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

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