1. D.R. Horton, Inc. (NYSE:DHI)
Number of Hedge Fund Holders: 67
D.R. Horton, Inc. (NYSE:DHI) is a homebuilding company that acquires and develops land, and it also builds and sells residential homes. The company operates through D.R. Horton, Emerald Homes, Express Homes, and Freedom Homes brands and tops our list of the best housing stocks to buy according to hedge funds.
On April 18, D.R. Horton, Inc. (NYSE:DHI) announced a quarterly dividend of $0.30, payable by May 9 to the shareholders of record on May 2. As of May 2, the stock’s dividend yield is 0.82%.
D.R. Horton, Inc. (NYSE:DHI) was part of 67 hedge funds’ portfolios in the fourth quarter of 2023 with a total stake value of $3.76 billion. GQG Partners is the most prominent shareholder in the company and has a position worth $572.709 million as of Q4 of 2023.
Baron Funds stated the following regarding D.R. Horton, Inc. (NYSE:DHI) in its fourth quarter 2023 investor letter:
“The share prices of our investments in homebuilder companies – Toll Brothers, Inc., D.R. Horton, Inc. (NYSE:DHI), Inc., and Lennar Corporation – gained 39.4%, 41.8%, and 33.2%, respectively, in the most recent quarter, in part due to the continuation of strong quarterly business results, management optimism about 2024 prospects, and a more than 100 basis point decline in 30-year mortgage rates during the quarter.
2023 was an excellent year for the public homebuilders. Housing fundamentals were resilient despite the affordability challenges of elevated mortgage rates and home prices. Several years of pent-up demand, fears that mortgage rates could move higher, a dearth of inventory in the existing home market, and an overall housing supply shortage drove home buyers off the sidelines to “stretch their wallet,” in part due to fears that they could miss out on the opportunity to buy a home. The Fund’s homebuilding companies Toll Brothers, D.R. Horton, and Lennar increased 108.0%, 71.4%, and 66.3%, respectively, in 2023.
Though we anticipate more modest gains for the Fund’s homebuilder investments in 2024, we remain optimistic about the long-term prospects for Toll Brothers, D.R. Horton, and Lennar. Further, we continue to believe there is a compelling case for the homebuilder valuations to re-rate higher over time.
Since the beginning of 2020, D.R. Horton, Lennar, and Toll Brothers have demonstrated substantial resilience and operating prowess. Despite several black swan events – COVID-19, a sharp increase in mortgage rates from 3% to 8%, and supply-chain disruptions – each company has managed its business exceptionally well and demonstrated that the demand to buy homes is resilient.”
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Should you invest $1,000 in D.R. Horton, Inc. (NYSE:DHI) right now?
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