Yahoo Finance Taylor Wimpey PLC's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance of Taylor Wimpey PLC
Taylor Wimpey PLC (TWODY) recently announced a dividend of $0.62 per share, payable on 2024-05-24, with the ex-dividend date set for 2024-04-01. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Taylor Wimpey PLC's dividend performance and assess its sustainability.
What Does Taylor Wimpey PLC Do?
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Taylor Wimpey is the UK's second-largest residential property developer by revenueor third-largest as judged by dwelling completionsand was established via the merger of George Wimpey and Taylor Woodrow in 2007. Taylor Wimpey is vertically integrated through the land development, construction, and sales and marketing segments of the residential property development value chain, aligning with the typical business model employed by UK homebuilders. The company also has a nascent homebuilding operation in Spain.
A Glimpse at Taylor Wimpey PLC's Dividend History
Taylor Wimpey PLC has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Taylor Wimpey PLC's Dividend Yield and Growth
As of today, Taylor Wimpey PLC currently has a 12-month trailing dividend yield of 6.70% and a 12-month forward dividend yield of 6.81%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Taylor Wimpey PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Taylor Wimpey PLC stock as of today is approximately 6.70%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Taylor Wimpey PLC's dividend payout ratio is 0.98, which may suggest that the company's dividend may not be sustainable.
Taylor Wimpey PLC's profitability rank of 7 out of 10 as of 2023-12-31 suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Taylor Wimpey PLC's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Taylor Wimpey PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Taylor Wimpey PLC's revenue has increased by approximately 7.30% per year on average, outperforming approximately 51.52% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Taylor Wimpey PLC's earnings increased by approximately 15.10% per year on average, outperforming approximately 53.09% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -7.90%, outperforms approximately 18.46% of global competitors.
Next Steps
In conclusion, Taylor Wimpey PLC's forthcoming dividend payment, alongside its historical dividend consistency, presents an attractive proposition for income-focused investors. However, the dividend sustainability is a nuanced subject, with the company's high payout ratio raising questions about long-term viability. Conversely, Taylor Wimpey PLC's solid profitability and favorable growth metrics provide a counterbalance, suggesting the potential for continued dividend payments. Investors should weigh these factors, alongside broader industry trends and company-specific strategic initiatives, when considering the stock for their portfolios. Will Taylor Wimpey PLC continue to reward shareholders with robust dividends, or will financial prudence necessitate a reassessment of payout policies? For those seeking high-dividend yield investments, GuruFocus Premium offers a comprehensive High Dividend Yield Screener to discover similar opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.