D.R. Horton: A Great Company With An Undervalued Stock

Apr. 17, 2021 7:55 AM ETD.R. Horton, Inc. (DHI) StockDHI11 Comments

Summary

  • Supply shortages in housing market make homebuilding sector quite attractive.
  • D.R. Horton's payout ratio is safe and can continue to grow.
  • The stock looks undervalued.

New Home Construction in Progress
Photo by stanley45/iStock via Getty Images

D.R. Horton's (NYSE:DHI) management is bringing attractive returns for shareholders. The company pays 2.2% yield via the stock repurchase program and dividends. The current market price indicates that the market expects only 6.18% growth rate, which is

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I am an equity research analyst looking for the highest quality value and growth opportunities. I do prefer those industries which have a promising outlook and are expected to grow at an above-average rate.Associated with another SA contributor Growth Analyst.

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, but may initiate a long position in DHI over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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