Among UK stocks, home-building company Taylor Wimpey PLC (GB:TW) offers an attractive dividend yield of 6.98%, which is way higher than the sector average of 0.99%. The company’s dividend policy is linked to the cyclical nature of its business. Nonetheless, TW is committed to maintaining regular dividends across all stages of the housing cycle, with additional returns distributed at opportune moments.
Taylor Wimpey is among the leading construction companies in the UK, focused on residential development. The company’s standard dividend approach involves distributing around 7.5% of net assets to shareholders each year or a minimum of £250 million annually, paid out in two equal parts.
For selecting the right dividend stock across multiple markets, TipRanks provides a range of tools to assist users. For this analysis, we have used the TipRanks Top Dividend Shares tailored for the UK market, which compiles a thorough list of high-dividend-paying companies for the users to evaluate.
Let’s take a look at some details of Taylor Wimpey’s dividends.
Taylor Wimpey Dividends 2023
The company’s most recent dividend was an interim payment of 4.79p per share, distributed in November 2023. The final dividend for 2023 is 4.79p per share, which is payable on May 10th. The total dividend for 2023 amounted to 9.58p per share, surpassing the previous year’s total payment of 9.40p.
The company paid a total of £338 million to its shareholders as dividends in 2023. Even after this, the company maintained strong cash generation and ended the year with a net cash of £677.9 million.
Encouraging Outlook
Taylor Wimpey is showing some signs of improvement in trading in 2024. The company’s business inquiries have increased as reduced mortgage rates have had a favourable impact on affordability and confidence among its customer base. In 2024, the company’s net private sales rate from January to February 25, was 0.67 per outlet per week, compared to 0.62 during the same period in 2023.
Overall, the company is optimistic about the signs of recovery in the UK housing sector, offering relief to prospective buyers.
What is the Stock Price Forecast for Taylor Wimpey?
On TipRanks, TW stock has received a Moderate Buy rating based on four Buy versus five Hold recommendations. The Taylor Wimpey share price target is 148.89p, implying 10.6% upside potential.
