Home Improvement Chain Wicks Group (LSE: WIX) probably isn’t the first name that comes to mind when you’re looking for the top share of FTSE earnings. But it caught my attention in September.

I was looking for stocks that I thought could benefit from the support of the up-to-date Labor government, in particular its plans to restart the UK by pushing forward proposals to build 1.5 million up-to-date homes over five years.

I was improving my skills a bit and where were all my traders? Wicks.

A desirable FTSE share with well-defined yields

While I never believed Labor would build the equivalent of 300,000 homes a year – something we haven’t done since the 1950s – I thought it had shown willingness. So I bought Wickes shares on September 13 only to see them fall within a few days.

So far I’m down 13.11%, but other investors will be happier as the Wickes share price is up 22.89% in 12 months.

I buy shares with a long-term perspective, so I can handle this short-term decline calmly. My Wickes shares are falling for the same reason as mine Taylor Wimpey stocks are falling.

Hopes for a series of interest rate cuts next year have faded with the Bank of England warning that Labour’s budget may be inflationary. The same goes for Donald Trump’s presidency. This will take the pressure off homeowners, property buyers and consumers, meaning my tradespeople won’t be spending as much time at Wickes.

The budget hit Wickes on a second front. Chancellor Rachel Reeves increased the employers’ national insurance rate from 13.8% to 15%, cut the NI salary threshold from £9,100 a year to £5,000 and increased the minimum wage by 6.7%.

Wickes employs over 8,000 people in 233 stores, which is not as many as I expected. However, higher staff costs will hold back the company, which earns low margins of just 4%.

Wickes shares will rise as interest rates fall

On October 22, management released an update to its third-quarter financial results, confirming that full-year earnings forecasts remain unchanged, helped by falling costs. However, this was released ahead of the budget on October 30.

While retail revenues rose 2.2% to £945.3m in the nine months to September 28, design and installation revenues fell 14.1% to £245.9m as customers held off spending more on bathrooms and kitchens. Total group revenue fell 1.6% to £1.19 billion.

Construction is a seasonal activity. In the third quarter, Wickes benefited from customers catching up on outdoor projects delayed by a saturated spring and early summer, but expects pent-up demand to decline in the fourth quarter.

Eight analysts offering annual Wickes share price forecasts set an average target of 176.6p. If true, this would represent an augment of 15.36% compared to today.

The trailing yield is currently 7.12% and the coverage is a bit gaunt at 1.4. For three years, the management has maintained a dividend per share of 10.9 pence, which is also not ideal.

The stock looks budget-friendly at 10.1 times trailing earnings, but I won’t buy more today. I won’t wait and I’m looking forward to the next dividend, hoping we’re all wrong about interest rates.