Taylor Wimpey Dividend: Dates, Forecasts, and Analysis

With the British government seeking to build 1.5 million new homes by 2029, Taylor Wimpey (LSE:TW.) and its dividend could be set for a terrific boost. After all, British housing remains in short supply, and interest rates are steadily falling, allowing the demand cycle to ramp back up.

That should have created a potentially powerful tailwind for the firm’s cash flow and, in turn, shareholder rewards. But like most things with investing, the situation is a bit more complicated.

So, let’s explore when this homebuilder stock pays its dividend, where it could grow in the future, and what risks shareholders are exposed to.

When does Taylor Wimpey pay dividends?

Taylor Wimpey pays dividends to shareholders twice per year. While the exact dates tend to vary slightly, shareholders on the record during the start of April and October are eligible to receive dividends, which are typically paid one month later.

Despite appearances, the first dividend payment of each year is actually the final dividend payment of Taylor Wimpey’s previous fiscal year. That also means the second payment in November is actually the first interim dividend of the next fiscal year.

In 2025, that means that the dividends paid in May were actually the final dividend of 2024, and the November payment is the interim dividend of 2025. Therefore, the final dividend of 2025 will be paid in May 2026.

What is the dividend payout ratio for Taylor Wimpey

Looking at the latest full-year results for 2024, Taylor Wimpey paid a total ordinary dividend of 9.46p per share. Over the same period, the homebuilder generated a net income of 8.4p per share.

Therefore, Taylor Wimpey has a payout ratio of approximately 113%. This means the homebuilder has returned more capital to shareholders than it generated in profits during 2024. Typically, a payout ratio greater than 100% cannot be sustained over the long run and could later result in a dividend cut if earnings do not improve.

However, it’s important to remember that the homebuilder operates in a cyclical industry. When market conditions suffer, so do earnings. With rising inflation and interest rates, Taylor Wimpey’s earnings have been slashed by more than half compared to the 19.8p per share generated in 2022. And when paired with a 9.46p dividend per share over the same period, the homebuilder’s payout ratio has increased significantly from 47%.

In 2025, the pressure has only increased. A combination of a £20m bill due to defective work, a £18m penalty from the competition regulators, and a £222m increase in its provision for cladding fire safety, has culminated in a dividend cut as signalled by 2024’s payout ratio.

Nevertheless, comparing the firm’s updated payout to its share price of 102p reveals that Taylor Wimpey shares still offer a fairly substantial 8.9% dividend yield. However, should shareholder payouts or the share price change, this yield could move up or down in the future.

Taylor Wimpey’s dividend history

Taylor Wimpey has a long track record of paying and growing dividends. Over the last 10 years, the homebuilder has increased shareholder payouts by an impressive average of 19.8% per year. However, over the last five years, this growth has been maintained at 19.8% per year, although it’s important to highlight that this measurement period does start from the low point created by the Covid-19 pandemic.

Like many other companies exposed to the real estate market during the 2008 financial crisis, dividend payments were cancelled for several years. And even today, on a per-share basis, shareholder rewards have yet to recover to 2007 levels.

What is the Taylor Wimpey dividend forecast for 2025, 2026

The British government is simplifying the planning permission process. That means the regulatory environment for homebuilding companies like Taylor Wimpey is becoming friendlier, allowing the firm to more easily convert its landbank into properties for sale.

However, market conditions today are very different compared to a few years ago. 2023 marked the end of the 10-year Help-to-Buy scheme. Interest rates are no longer close to 0%. At the same time, the government’s latest budget offered support on the supply side of the housing equation but no stimulus for the demand side. Don’t forget, Britain has a significant shortage of actual qualified homebuilders.

Pairing all this with the continued short-term uncertainty, analysts have been revising down their expectations for 2025 and 2026.

Homebuilders are exposed to a lot of external influences like macroeconomic factors. As such, these forecasts may prove inaccurate should market conditions worsen or similarly improve more than expected. Therefore, investors must consider both the risks and potential rewards.

What are the risks of investing in Taylor Wimpey?

As previously mentioned, Taylor Wimpey, like most homebuilders, has a lot of external influencing factors. Given that constructing homes uses a lot of raw materials such as wood, metal, and concrete, profit margins are subject to the risk of fluctuating commodity prices.

Home affordability is also largely driven by mortgage rates and economic growth. During recessions, home-buying activity tends to drop significantly, adversely impacting earnings and cash flow. Shareholders have experienced this first-hand in 2023, with earnings being essentially slashed in half. And margins have continued to be squeezed throughout 2024 and 2025 as well.

To navigate down cycles in the market, management keeps a significant chunk of cash on its balance sheet. This provides ample liquidity for short-term speed bumps. However, protracted economic downturns can be severe for Taylor Wimpey. Cash reserves only last so long, and if there’s a sudden need for additional capital, the firm may be forced to sell newly built homes at a discount or even potentially at a loss, depending on the material costs.

Which homebuilder stock pays the highest dividend?

Taylor Wimpey is not the only homebuilding business on the London Stock Exchange. However, while the company resisted cutting its dividend for longer, it has eventually followed and reduced shareholder payouts. Despite this, the firm still offers the highest dividend yield amongst its peers.