This best British dividend gives an eye -catching 9.5%. It’s the highest on FTSE 100. But it also has problems. The company in question is the builder Taylor Wimpey (LSE: TW), and his actions fell by 40% during the year to trade at the lowest level 52. With a price ratio of only 11.9, it looks like a quote. But be careful.

Taylor Wimpey shares are fighting

I bought stocks in 2023 with a long -term view and I am glad that I can keep up and downs. I have dividend compensation, even if I’m generally downstairs. The management board recently cut off a transient payment from 4.8 pens to 4.67 pens, but the general commitment to shareholders looks solid. I still promise to return about 7.5% of net assets a year, which means at least 250 million pounds a year.

The guidelines now indicate a 9.13% forecast in 2025 and 9.3% in 2026. Although it is slightly lower than today, it is still a brilliant income rate. Investors who favor high -performance dividend shares will tempt. They should also be careful.

Pressure remain

Inflation brought 3.8% in July and could mark up to 4% in September. This will keep mortgage loans higher than we would like, achieving the buyer’s accessibility and demand. Adhesive inflation also increases the costs of Taylor Wimpey, while wages also increased faster than prices, which is an enhance of 4.6% per year. The enhance in April to social insurance for employers and the minimum wage squeezed the margins even more.

The results last month (July 30) revealed a loss in the first half of 92.1 million pounds. The main resistance was the recipe of the 222 million pounds cladding, but the slowdown also hurt. As a result, the Council reduced the annual guidelines for profits by 20 million GBP.

The group is still expecting to end from 10,400 to 10,800 houses in Great Britain in 2025, which is muted perspectives, taking into account the government’s obligation to build houses of 1.5 million of this parliament.

Tax policy can enhance pain. Rumors with novel fees about real estate with a higher budget can stick to sentiment. Unless there are only rumors.

Long -term growth prospects

Investors considering whether to buy shares must do homework. What I see is a good company that has a challenging time. Taylor Wimpey is largely at the grace of events outside his control. The interest rates will have to fall, ease of inflation and return to trust before the demand for the apartment strengthens. This may take some time, but the capacity of over 9% pays well while waiting.

We cannot expect immediate recovery. Construction houses have fought since they fell after voting in Brexit in 2016. Ten years ago, the price of Taylor Wimpey shares hesitated about 200 pence. Today is just below 100p. So at that time it fell by half. With this kind of worse, high dividend results are not enough.

For investors who understand and accept the risk and can withstand more brief -term turbulence, today it can offer a brilliant entry point. I took the gibberish, but I comforted myself with the thought that my reinvested dividends with a gathering more actions at today’s reduced price.

I think others can consider buying at this level, just don’t expect glossy driving. If I feel brave, I could even realize in my position.