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Are you looking for the best reserves of passive income to buy next month? Here is one that I think it can be a great source of long -term dividends.
In 2025, the dividend performance is more than twice as much as FTSE 100 Medium forward 3.5%.
8.4% of dividend performance
The tardy economy still throws a cloud over the housing market. There is also uncertainty about future interest rates among the last receipt of inflation.
However, Homebuyer’s activity remains resistant, suggesting Taylor Wimpey (LSE: Your) can be a sturdy choice for dividend investors.
City analysts expect a year -round dividend to boost by 1% in 2025, to 9.56 pens per share. After a recent weakening of share prices, this means that the dividend profitability on Taylor Wimpey shares is huge 8.4%.
Dividend risk
There is a certain risk for current dividend forecasts, saying that.
The expected payment for this year is higher than the expected earnings of 9.13 pence, leaving the builder consisting of the balance sheet and hopes that the recovery of the housing market is not won.
On the other hand, Taylor Wimpey has a lot of cash on books to aid her meet dividend forecasts. Net cash was 564.8 million GBP from December.
What’s more, the latest residential market data remain very encouraging.
According to national real estate prices in Great Britain, they increased by 0.4% of the month in January, to 270 493 GBP. In December it was an boost of 0.1%.
Last month, prices increased by 3.9%.
Strong update
The latest commercial data from Taylor Wimpey itself is also quite calming. FOOTSIA said on Thursday (27 February) that the private net sales rate between January 1 and 23 was 0.75 for sales per week, which is an boost of 12% year on year.
Meanwhile, its total order book (excluding joint ventures) increased to 2.3 billion GBP, covering about 8,021 houses. Compared to 1.9 billion GBP and 7402 at the same point, respectively in 2024.
A solid level of orders means that Taylor Wimpey expects to record from 10,400 to 10,800 completion, excluding joint ventures in 2025. This increased from 9,972 last year.
According to Andy Murphy’s analyst from Edison: “A reliable company balance, increased land approval and improved planning of the pipeline positions IT for the increase in volume in 2025. “
Buy long -term?
Even despite the low -term risk, I think Taylor Wimpey is an attractive supply of passive income to consider. And not only because of 8%dividend performance.
I expect the company to operate strongly in a longer horizon of time, because the boost in the population drives housing demand. The government plans to build 1.5 million novel houses in the years 2024–2029 – a focus of provisions on planning for house construction – they will provide houses to boost profits.
Deep Land Bank Taylor Wimpey takes a sturdy position to exploit this opportunity. At the end of 2024, it had about 136,000 plots after the company added another 12,000 in the last year.
Although this is not without risk, I think Taylor Wimpey is a great reserve to consider long -term dividend income.