Later chips use a faster algorithm called SRT. It uses a table to estimate quotient bits two or four at a time. Intel's Pentium chip (1993) missed a few table entries so it occasionally got the answer wrong, the famous FDIV bug. Replacing the bad chips cost Intel $475 million.
Division on the 8086 was very very slow, up to 184 clock cycles due to all the looping. Modern Intel processors are much faster, but division is still slow compared to addition or multiplication. While you can now multiply every clock cycle, divisions need 6-10 clock cycles.