1 Dividend Stock Worth Buying Now as Trump Addresses Housing Affordability

Trump Proposes Measures to Boost Homeownership

Former President Donald Trump has unveiled a series of proposals aimed at making it easier for Americans to purchase homes. He is advocating for lower mortgage rates and has called on the federal government to purchase $200 billion in mortgage-backed securities, a move he believes will help reduce 30-year mortgage rates, which currently hover around 6%.

Trump is also pressing lawmakers to temporarily cap credit card interest rates at 10%—a significant drop from the current average of about 21%—to help families save more quickly for home down payments. Additionally, he wants to prevent large investment firms from acquiring single-family homes, ensuring that individual buyers face less competition from institutional landlords.

Related Updates from Barchart

Amid these policy discussions, Lennar Corporation (LEN), a well-established homebuilder, has drawn increased attention. The company's stock has surged approximately 8% over the past month, fueled by these developments. The key question now is whether Lennar represents an attractive investment opportunity. Let's take a closer look.

Lennar’s Financial Strength and Dividend Profile

Headquartered in Miami, Lennar Corporation specializes in building affordable, move-up, and active-adult homes throughout the United States. The company boasts an equity base of nearly $27.9 billion and pays a forward annual dividend of $2 per share, translating to a yield of around 1.8%.

As of February 5, Lennar shares were trading at $115, reflecting an 11% gain since the start of the year, though the stock is down 10% over the past 12 months.

With a forward price-to-earnings (P/E) ratio of 17.39, compared to the sector median of 18.20, and a price-to-book (P/B) ratio of 1.28 versus the sector's 2.67, Lennar appears to be trading at a relative discount.

The company’s most recent earnings, released on December 16, 2025, showed total revenue of about $9.4 billion, a 6.33% increase year-over-year. However, net income dropped to roughly $490.2 million, down 17.04%. Adjusted earnings per share (EPS) for the quarter came in at $2.03, missing the consensus estimate of $2.23 by nearly 9%, reflecting tighter profit margins and increased incentives to drive sales.

Operating cash flow for November 2025 reached approximately $216.8 million, more than doubling year-over-year. Despite a negative net cash flow of about $1.16 billion, this represented a 64.14% improvement from the previous year, as Lennar continued to invest heavily in land, new communities, and its development pipeline.

Lennar’s Push for Affordable Housing

Lennar is actively addressing the need for affordable homes. The company recently launched sales at River Bridge Ranch in San Marcos, Texas, a community designed for budget-conscious buyers. Homes in this development range from 1,200 to 2,780 square feet, offering three to five bedrooms and two to three bathrooms, with prices starting in the mid-$200,000s. Each home includes a package of standard features at no extra cost, making them more accessible to a wider range of buyers.

On the financial front, Lennar has also been busy. On November 26, 2025, the company announced the completion of an exchange offer for up to 33,298,764 shares of Millrose Properties Class A stock—about 20% of Millrose’s outstanding shares—in exchange for Lennar Class A common stock. The offer, which closed on November 21, 2025, was oversubscribed, with more than 85 million Lennar shares tendered. Of these, 84.5 million were subject to proration, while 778,625 “odd-lot” shares were accepted in full.

Wall Street’s Perspective on Lennar

Lennar’s next quarterly report is scheduled for March 19, covering the period ending February 2026. Analysts are taking a cautious approach, with current quarter EPS estimates at $0.96, down from $2.14 a year ago—a projected decline of about 55%. Looking ahead to the quarter ending May 2026, the average EPS estimate is $1.41, compared to $1.90 last year, suggesting a drop of roughly 26%.

Among 19 analysts, the consensus rating is “Hold”—a neutral stance. The average price target is $107.15, which is below the current share price, indicating expectations of limited upside in the near term.

Final Thoughts

With renewed attention on housing affordability, Lennar stands out as a potentially solid dividend stock. The company continues to grow, its cash flow is on the upswing, and its focus on affordable communities aligns with current policy trends. While the stock may pause or move sideways following its recent rally, the longer-term outlook remains positive as supportive policies and strong fundamentals come together.