Meritage HomesFRA:MEY -2.08%79 Dividend Payout Ratio is 0.56 as of Mar. 2026, which is 300% above its 10-year median of 0.14. GuruFocus rates FRA:MEY with a GF Score™ of 79/100 and a GF Value™ of €58.23 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 51 Homebuilding & Construction companies, Meritage Homes ranks better than 64.71% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Meritage Homes's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.56.
The historical rank and industry rank for Meritage Homes's Dividend Payout Ratio or its related term are showing as below:
FRA:MEY'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.05 Med: 0.14 Max: 0.29
Current: 0.29
During the past 13 years, the highest Dividend Payout Ratio of Meritage Homes was 0.29. The lowest was 0.05. And the median was 0.14.
FRA:MEY's Dividend Payout Ratio is ranked better than 64.71% of 51
companies
in the Homebuilding & Construction industry
Industry Median: 0.39
vs FRA:MEY: 0.29
During the past 12 months, Meritage Homes's average Dividends Per Share Growth Rate was 13.80% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Meritage Homes was -7.30% per year. The lowest was -76.30% per year. And the median was -58.10% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
Meritage Homes (FRA:MEY) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Meritage Homes Dividend Payout Ratio Related Terms
Meritage Homes Dividend Payout Ratio Historical Data
* Premium members only.
The historical data trend for Meritage Homes's Dividend Payout Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:MEY vs IBP, SKY, CVCO: Dividend Payout Ratio Comparison
For the Residential Construction subindustry, Meritage Homes's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Meritage Homes Dividend Payout Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Meritage Homes's Dividend Payout Ratio falls into.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
Meritage Homes's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Meritage Homes (FRA:MEY) has a Dividend Payout Ratio of 0.56 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Meritage Homes and its competitors. This is 300% above median its historical median of 0.14. Over the past decade, Meritage Homes' Dividend Payout Ratio has ranged from 0.05 to 0.29. According to the industry distribution chart, Meritage Homes ranks #18 out of 51 companies in the Homebuilding & Construction industry, placing it in the top 35.3%.
Is Meritage Homes' Dividend Payout Ratio too high?
Meritage Homes' current Dividend Payout Ratio of 0.56 is 300% above median its 10-year median of 0.14. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 0.29. The Homebuilding & Construction industry median Dividend Payout Ratio is 0.39. Meritage Homes' value of 0.56 is 43.6% above this industry median. Based on the distribution chart, Meritage Homes ranks #18 out of 51 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Meritage Homes has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' Dividend Payout Ratio compare to IBP and SKY?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #18 out of 51 companies for Dividend Payout Ratio. This puts Meritage Homes in the upper half of its industry. The industry median Dividend Payout Ratio is 0.39. Meritage Homes' value of 0.56 is 43.6% above this benchmark. Historically, Meritage Homes' own Dividend Payout Ratio has ranged from 0.05 to 0.29 over the past decade. While the company's 10-year median is 0.14 vs. the industry median of 0.39, Meritage Homes has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Homebuilding & Construction company?
The median Dividend Payout Ratio among Homebuilding & Construction companies is 0.39, based on 51 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current Dividend Payout Ratio of 0.56 is 43.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median Dividend Payout Ratio is 0.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current Dividend Payout Ratio is 0.56, which is 300% above median its own 10-year median of 0.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meritage Homes stock overvalued right now?
Based on GuruFocus' analysis, Meritage Homes (FRA:MEY) is currently considered Modestly Overvalued. The stock's GF Value™ is €58.23, compared to a current price of €70.50 — trading 21.1% above its estimated fair value. The current Dividend Payout Ratio is 0.56, which is 300% above median its 10-year median of 0.14 and 43.6% above the Homebuilding & Construction industry median of 0.39. Meritage Homes' overall GF Score™ is 79/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current Dividend Payout Ratio is 0.56 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Meritage Homes (FRA:MEY) Overvalued in 2026?
Based on GuruFocus' analysis, Meritage Homes stock appears to be overvalued.
The current stock price of €70.50 is trading 21.1% above its estimated GF Value™ of €58.23.
GuruFocus considers Meritage Homes to be Modestly Overvalued.
Key valuation signals for FRA:MEY:
Dividend Payout Ratio: 0.56 (300% above median its 10-year median of 0.14)
GF Value™: €58.23 vs. price of €70.50 (21.1% above fair value)
Industry Position: 43.6% above the Homebuilding & Construction median (#18 of 51)
No single metric tells the full story. See the FRA:MEY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meritage Homes Corp is engaged as a designer and builder of single-family attached and detached homes. It has operations in three regions: West, Central, and East, comprising twelve states: Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina. The company operates with two principal business segments: homebuilding and financial services. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes, and providing warranty and customer services, and the financial services segment offers title and escrow, mortgage, and insurance services. The company generates key revenue from the Homebuilding segment.
79GF Score
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