Picture supply: Getty Photographs
I’ve spent just a few years shovelling cash into Taylor Wimpey (LSE: TW) shares. Am I mad? Fairly probably.
I began shopping for the UK housebuilder in 2023, dazzled by its low valuation, juicy yield and strong stability sheet. But I knew it confronted challenges.
Housebuilders took a beating after the 2016 Brexit vote, falling 40% on fears the property market would crash. But it surely didn’t. The sector confronted extra uncertainty through the 2020 pandemic, but there was no Covid crash. And when inflation and mortgage charges soared because of the Ukraine warfare, a home value crash was forecast however by no means got here. The Iran warfare hasn’t triggered one both but Taylor Wimpey shares have nonetheless plunged.
Why has this FTSE 250 inventory been hit so exhausting?
They’re down virtually 55% over the past 5 years and 33% over 12 months. Buying and selling at round 80p, they’re at ranges final seen 13 years in the past.
A fast look at Taylor Wimpey’s pre-tax earnings for the final 5 years tells us why the shares have had such a rotten run.
- 2025 – £146.5m
- 2024 – £320.3m
- 2023 – £473.8m
- 2022 – £827.9m
- 2021 – £679.6m
The large drop in 2025 was pushed by distinctive prices, primarily £243.8m for post-Grenfell cladding hearth security provisions. A lot of the different points have been out of the board’s management.
Increased inflation has squeezed patrons and pushed up mortgage charges. It’s additionally pushed up the price of labour and supplies. Then elevated employers’ Nationwide Insurance coverage,and two massive hikes to the minimal wage additional squeezed margins. 2026 was speculated to be higher however now mortgage charges are rising once more because of the oil value spike.
Taylor Wimpey isn’t an outlier by the way in which as each main UK housebuilder has taken a beating too.
Is that dividend sustainable?
That headline trailing yield of 11.75% is gorgeous however sadly, you gained’t get it. The ahead yield is projected to drop to eight.16% in 2026. This desk will present you what’s happening:
| Complete dividend | Development | |
| 2025 | 7.62p | (19.45%) |
| 2024 | 9.46p | (1.25%) |
| 2023 | 9.58p | 1.91% |
| 2022 | 9.40p | 9.56% |
| 2021 | 8.58p | 107.25% |
That vast 107% leap in 2021 was the board compensating for cancelling shareholder payouts within the pandemic. Dividends have been lower within the final two years, and by a hefty 19.45% in 2025. We are able to’t rule out additional cuts till market circumstances enhance. So when will that be?
I can’t see a swift decision to the Iran warfare. Even when we get one, inflation is more likely to stay on the excessive facet. Mortgage price expectations are altering from in the future to the subsequent. The UK economic system is struggling and Taylor Wimpey has already warned of a softer order guide and pricing in 2026. However on the plus facet, it did really feel capable of greenlight a £52m share buyback.
I nonetheless imagine in Taylor Wimpey. However till the financial cycle swings again in its favour, I anticipate it can proceed to wrestle, and the dividend will stay underneath strain. Revenue seekers capable of take a long-term view would possibly think about it, however I believe there are much less difficult restoration alternatives on the FTSE as we speak.
Must you make investments £5,000 in Taylor Wimpey Plc proper now?
When investing skilled Mark Rogers and his crew have a inventory tip, it could actually pay to pay attention. In spite of everything, the flagship Twelfth Magpie Share Advisor publication he has run for almost a decade has offered hundreds of paying members with high inventory suggestions from the UK and US markets.
And proper now, Mark thinks there are 6 standout shares that traders ought to think about shopping for. Need to see if Taylor Wimpey Plc made the record?
Harvey Jones owns shares in Taylor Wimpey.
Picture supply: Getty Photographs
I’ve spent just a few years shovelling cash into Taylor Wimpey (LSE: TW) shares. Am I mad? Fairly probably.
I began shopping for the UK housebuilder in 2023, dazzled by its low valuation, juicy yield and strong stability sheet. But I knew it confronted challenges.
Housebuilders took a beating after the 2016 Brexit vote, falling 40% on fears the property market would crash. But it surely didn’t. The sector confronted extra uncertainty through the 2020 pandemic, but there was no Covid crash. And when inflation and mortgage charges soared because of the Ukraine warfare, a home value crash was forecast however by no means got here. The Iran warfare hasn’t triggered one both but Taylor Wimpey shares have nonetheless plunged.
Why has this FTSE 250 inventory been hit so exhausting?
They’re down virtually 55% over the past 5 years and 33% over 12 months. Buying and selling at round 80p, they’re at ranges final seen 13 years in the past.
A fast look at Taylor Wimpey’s pre-tax earnings for the final 5 years tells us why the shares have had such a rotten run.
- 2025 – £146.5m
- 2024 – £320.3m
- 2023 – £473.8m
- 2022 – £827.9m
- 2021 – £679.6m
The large drop in 2025 was pushed by distinctive prices, primarily £243.8m for post-Grenfell cladding hearth security provisions. A lot of the different points have been out of the board’s management.
Increased inflation has squeezed patrons and pushed up mortgage charges. It’s additionally pushed up the price of labour and supplies. Then elevated employers’ Nationwide Insurance coverage,and two massive hikes to the minimal wage additional squeezed margins. 2026 was speculated to be higher however now mortgage charges are rising once more because of the oil value spike.
Taylor Wimpey isn’t an outlier by the way in which as each main UK housebuilder has taken a beating too.
Is that dividend sustainable?
That headline trailing yield of 11.75% is gorgeous however sadly, you gained’t get it. The ahead yield is projected to drop to eight.16% in 2026. This desk will present you what’s happening:
| Complete dividend | Development | |
| 2025 | 7.62p | (19.45%) |
| 2024 | 9.46p | (1.25%) |
| 2023 | 9.58p | 1.91% |
| 2022 | 9.40p | 9.56% |
| 2021 | 8.58p | 107.25% |
That vast 107% leap in 2021 was the board compensating for cancelling shareholder payouts within the pandemic. Dividends have been lower within the final two years, and by a hefty 19.45% in 2025. We are able to’t rule out additional cuts till market circumstances enhance. So when will that be?
I can’t see a swift decision to the Iran warfare. Even when we get one, inflation is more likely to stay on the excessive facet. Mortgage price expectations are altering from in the future to the subsequent. The UK economic system is struggling and Taylor Wimpey has already warned of a softer order guide and pricing in 2026. However on the plus facet, it did really feel capable of greenlight a £52m share buyback.
I nonetheless imagine in Taylor Wimpey. However till the financial cycle swings again in its favour, I anticipate it can proceed to wrestle, and the dividend will stay underneath strain. Revenue seekers capable of take a long-term view would possibly think about it, however I believe there are much less difficult restoration alternatives on the FTSE as we speak.
Must you make investments £5,000 in Taylor Wimpey Plc proper now?
When investing skilled Mark Rogers and his crew have a inventory tip, it could actually pay to pay attention. In spite of everything, the flagship Twelfth Magpie Share Advisor publication he has run for almost a decade has offered hundreds of paying members with high inventory suggestions from the UK and US markets.
And proper now, Mark thinks there are 6 standout shares that traders ought to think about shopping for. Need to see if Taylor Wimpey Plc made the record?
Harvey Jones owns shares in Taylor Wimpey.
