The only thing stopping me from buying Taylor Wimpey (LSE:TW) shares is that I already have a stack of them.

I admit they didn’t do particularly well. But that’s the attraction because it makes them inexpensive. Every time they go down I bought more at a lower price. So is this the year they come back into shape and make me opulent? Let’s see.

The construction company has had a disastrous five years, with its shares down 35% in that time. Last year they fell by 5%.

Once in FTSE100Taylor Wimpey currently lives in FTSE250. He’s not the only one struggling, every home builder has had a difficult time lately.

FTSE 250 Dividend Star

High real estate prices have driven many buyers out of the market. The end of the Help to Buy scheme in 2023 has made their lives even more challenging. At the same time, inflation increased mortgage interest rates as well as labor and material costs.

Taylor Wimpey also had to fork out £435m to fix faults in facades and fire safety following the Grenfell tragedy. The average selling price of homes in the UK has fallen from £4,000 to £313,000, meaning it is being squeezed on all sides.

It is still on track to achieve group operating profits of £424m for the full year 2025, but this figure has been reduced from April forecasts of £444m. This is only slightly more than the £416 million earned in 2024.

So am I crazy for buying these shares? I don’t think so. Although when it comes to investing, we can never be sure.

The large attraction is that Taylor Wimpey pays one of the most generous dividends of all the FTSE 100 and FTSE 250 indices, with a staggering trailing yield of 8.75%. After reinvesting them, I make a profit.

Huge passive income

When dividends become this enormous, they may be susceptible to cuts. In fact, that’s exactly what Taylor Wimpey did in 2024, cutting its dividend per share by 1.25% to 9.46p. The management may make another cut in 2025, but as long as it’s another petite one, I can live with that.

Despite all these challenges, I still believe there is a great opportunity here. The stock looks good, with a price-to-earnings ratio of 12.8. Remember that for some time they looked inexpensive, nothing spectacular.

This huge amount of cladding compensation has already been factored into the price. Let’s hope that the management will not have to set aside more money, although we cannot rule it out.

Since April 2024, the Bank of England has cut interest rates six times to 3.75%. Some analysts believe they may drop to 3% this year. This would lower mortgage costs and boost demand. Wages are also rising, although growth may ponderous. Britain needs homes.

Personally, I think Taylor Wimpey stock is a generational opportunity. But as I have shown, they are not without risk. Investors should only consider them from a long-term perspective. And that’s exactly what I’m doing. I reinvest any dividends I receive to boost my stake, and I hope to reap the benefits when things return to favor. After writing this, I want to buy even more.