Taylor Wimpey Builds In England And Spain

The Consumer Cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Footwear, Gambling, Leisure, Lodging, Packaging, Personal Services, Restaurants, Rubber, Plastics, & Textiles, and all such consumer aimed enterprises.

Today I'm reviewing a mid-cap United Kingdom based residential construction firm.

It's name is Taylor Wimpey PLC

It's trading ticker symbol is TWODY. I previously described this company back on April 10. 

Taylor Wimpey PLC is a residential developer. It offers homes from apartments to five bedroom houses. It provides housing in the United Kingdom and Spain.

In 2007 George Wimpey and Taylor Woodrow merged to form Taylor Wimpey. The home building and construction heritage of both companies dates back more than 100 years.

Taylor Wimpey plc is headquartered in Buckinghamshire, UK.

I use three key data points gauge the value of any dividend equity or fund like Taylor Wimpey plc: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest.

However, first three primary keys, best tell whether a company has made, is making, and will make money. 

TWODY Price

Taylor Wimpey's price was $27.36 per share at yesterday's market close. A year ago its price was $22.81 for a gain of $4.55 per share.  

Assuming Taylor Wimpey's price will trade in the range of $22 to $32 next year, its price could grow another $4.55 from $27.36 to $31.91 by July 2019. 

TWODY Dividends

Taylor Wimpey's most recent variable semi-annual dividend was $0.33 paid June 1st. 

Past semi-annual payouts peg the annual amount at $1.49 for a yield of 5.4% at yesterday's $27.36 share price. 

Gains For TWODY?

Adding the $1.49 annual dividend to the $4.55 potential year over year price gain makes a $6.04 projected gross annual gain, which will be reduced by any cost to trade these shares.  

$1,000.00 invested today at the $27.36 price buys 37 shares. 

A $10 broker fee paid half at purchase and half at sale costs about $0.27 per share

Subtracting that $0.27 brokerage cost from the estimated $6.04 gross gain leaves a net gain of $5.77 X 37 shares 

= $213.49

or a 21% net gain on a $1,012.32 investment.

Therefore, Taylor Wimpey plc (whose ticker symbol is TWODY), now shows a possible 21% net gain including a 5.4% dividend yield. 

No analysts cover this stock. The current stock price has retreated 3% from a high of $28.15 reached February 8. The projected year over year price target at $31.91 may be more optimistic than the market will allow.

Y Charts has not yet rated TWODY for an overall "Y" rating. Y Charts shows "insufficient data" for a Value score. And YCharts has "insufficient data" for a Fundamental reading. A Historic Valuation score for TWODY also has "insufficient data" by Y Charts.

You could look at all those numbers like this: Taylor Wimpey plc has made money, is making money, and could net a 23% gain next year including a 5.4% annual dividend yield. It could be more, it could be less.

The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Taylor Wimpey plc is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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