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As a seasoned worth and earnings investor, I am at all times in search of low cost shares. Ideally, you are in search of strong firms whose inventory costs commerce at low valuations, or firms that pay a market-beating dividend yield to affected person shareholders. Consequently, my household’s portfolio now consists of about 25 various things. FTSE100 and FTSE250 KK.
Not too long ago, we discovered one other promising candidate that we do not personal (but).
public property
Trying on the FTSE 250, we discovered a well-recognized record of shares whose share costs have fallen in 2025, pushing money yields into double digits. This firm is Taylor Wimpey (LSE: TW) is without doubt one of the UK’s largest listed housebuilders.
Taylor Winpay was born by bringing collectively rival teams. taylor woodrow and George Wimpey It was July 2007, simply as world inventory markets have been reaching their peak. The corporate has a protracted historical past, relationship again to George Wimpey’s first partnership in 1880 and Frank Taylor’s first building mission in 1921.
Sadly, this merger was accomplished simply earlier than the worldwide monetary disaster hit the market. From Might 2007 to December 2008, Taylor Wimpey’s share worth fell an astonishing 98%. However by August 2005, the inventory had made an unimaginable comeback, buying and selling above £2.
slide shares
Due to rising rates of interest within the UK, this FTSE 250 inventory has been a loser for the reason that coronavirus-induced capital markets collapse. Over the previous 5 years, the inventory has misplaced nearly a 3rd (-32.3%) of its worth. The inventory can also be down 19% previously 12 months.
Once more, the numbers above don’t embrace money dividends, however this actual property inventory pays a really giant dividend. As I write this, Taylor Wimpey shares are buying and selling at 101.9p, valuing the group at £3.6bn. That is giant for a mid-cap index, however too small for the elite FTSE 100 index.
At this stage, the inventory presents a really excessive dividend yield of near 9.2% per yr. This is without doubt one of the highest money returns of any FTSE 350 inventory. That is why Taylor Wimpey is now on my procuring record.
The enjoyment of dividends?
Nevertheless, expertise has proven us that ultra-high dividend yields generally is a crimson flag. These funds are usually not assured and could also be reduce or canceled at quick discover. What’s Taylor Wimpey’s dividend historical past? Right here it’s:
| yr | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
| Complete dividend quantity | 4.67p* | 9.46p | 9.58p | 9.4 pence | 8.58p | 4.14p** |
| change | (Remaining dividend solely) | −1.3% | +1.9% | +9.6% | — | (Interim dividend solely) |
Taylor Wimpey has foregone its closing dividend for 2020 because of the affect of the coronavirus and has not but introduced its closing dividend for 2025. Nevertheless, following final yr’s slight dividend reduce, the dividend will stay largely unchanged from 2022 onwards. Subsequently, we can’t count on a big enhance in dividends in the meanwhile.
It is value noting that the group had internet money of £326.6m on its steadiness sheet as of mid-2025. Nevertheless, this determine is down from £564.8m on the finish of 2024 and £677.9m on the finish of 2023. Nevertheless, this decline is principally because of the buy of extra land on which to construct.
In abstract, I just like the look of this FTSE 250 inventory as a dividend technique. Nevertheless, I do not see this changing into a go-go progress inventory until the UK property market improves considerably. Nevertheless, decrease rates of interest might enhance the housing market in 2025.
What different shares are extra thrilling at the moment?