SmarterDividends

DHI vs TM: Which Is the Better Dividend Stock?

As of July 2026, DHI (D.R. Horton, Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. TM offers the higher yield at 3.53%, DHI has the higher dividend-safety score, and TM trades at the larger discount to fair value (+76%).

MetricDHITM
Forward yield1.20%3.53%
Annual dividend$1.80$6.27
Payout ratio16%31%
Years of growth12 yr3 yr
5-yr dividend growth17.9%10.3%
5-yr total return56%2%
Dividend safety score83 (A)57 (C)
Fair value estimate$80.76$312.17
Upside to fair value-46%+76%
Frequencyquarterlysemiannual
Market cap$41.1B$211.4B
P/E ratio14.09.7

Higher yield

TM

3.53%

Safer dividend

DHI

Grade A

Faster growth

DHI

17.9%

Better value

TM

+76% upside

DHI vs TM — FAQ

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