Taylor Wimpey has long been one of the UK’s most watched housebuilders, and for income investors, its dividend has been the main attraction. With the stock trading around 87.86p and offering a yield that still sits near double digits, the question isn’t just whether the company can build homes — it’s whether it can keep writing the dividend cheques that shareholders have grown accustomed to. Here’s what the latest analyst coverage, price targets, and dividend history tell us about TW. right now.

Current Price: 87.86p (+3.17%) ·
Market Cap: £3.08b ·
Volume: 38,260,225 ·
Previous Close: 87.86p ·
Dividend Yield: 9.9% – 10.7%

Quick snapshot

1Confirmed facts
2What’s unclear
  • Whether the 8.85% trailing yield is fully sustainable (Stockopedia)
  • Official company guidance for 2026 dividends ((Stockopedia))
  • Exact impact of UK housing market headwinds on 2026 earnings ((Stockopedia))
3Timeline signal
4What’s next
  • Average 1-year price target: 121 GBX (MarketBeat)
  • Moderate Buy consensus from 10 firms (5 buys, 5 holds) ((MarketBeat))
  • Berenberg target 120 GBp, BofA target 90 GBX (TipRanks)

Six data points that define where TW. stands today, drawn from tier-1 and tier-2 financial aggregators and the company’s own investor relations.

Field Value
Ticker TW.L
Exchange London Stock Exchange
Market Cap £3.08b
Latest Price 87.86p
Change +2.70p (+3.17%)
Volume 38,260,225

Is Taylor Wimpey a buy, sell or hold?

The short answer from Wall Street is a qualified “hold” with upside hopes. As of mid-April 2026, analysts give Taylor Wimpey an average rating of “Moderate Buy” from 10 firms — split evenly with 5 buys and 5 holds (MarketBeat). A separate snapshot from Investors Chronicle showed a slightly more bullish spread: 4 Buy, 6 Outperform, 7 Hold, and 2 Sell as of 9 April 2026 (Investors Chronicle).

What’s driving the cautious optimism? The dividend yield is the headline. At 8.85% trailing (Stockopedia) and approaching 10.7% on a trailing basis according to Motley Fool UK, TW. still offers one of the highest yields in the FTSE 100. That said, the stock has work to do on price appreciation — the average 1-year price target sits at 121 GBX, implying roughly 38% upside from current levels, though individual targets range from Berenberg’s 120 GBp to BofA’s more conservative 90 GBX (TipRanks).

Analyst consensus

Berenberg analyst Harry Goad recently trimmed the firm’s target to 120 GBp from 128 GBp, yet maintained a Buy rating (TipRanks). Bank of America took a dimmer view, cutting its target to 90 GBX — below the current trading price (MarketBeat). This divergence reflects the broader tension in UK housebuilding: attractive yields versus uncertain volume growth.

Key buy signals

  • Trailing dividend yield of 8.85% with 10.7% cited by some aggregators (Stockopedia), (Motley Fool UK)
  • Mean consensus of OUTPERFORM from 20 analysts, per MarketScreener
  • Price-to-book ratio of 0.72 suggests the market is pricing in significant pessimism (Stockopedia)

Sell risks

  • Payout ratio of 155.50% in the last financial year — dividends exceeding earnings (StocksGuide)
  • Forecast EPS growth of -25.31% (Stockopedia)
  • Housing sector pressures from affordability constraints and stamp duty changes
Bottom line: The implication: the dividend is the story, but it’s also the risk. When a company pays out more than it earns, investors need to ask how long that can last.

What is the future outlook for TW shares?

Forecasts cluster around a modest recovery, but the range is wide. MarketScreener’s 20-analyst consensus points to an OUTPERFORM rating with an average target of 1.173 GBP — that implies over 33% upside from the 0.8786 GBP close used in that calculation (MarketScreener). TipRanks data shows a more conservative average target of 105.88p with a high of 135p and low of 80p (TipRanks).

Short-term forecast

The ex-dividend date of 2 April 2026 has already passed, meaning new buyers won’t receive the final 2025 payout of 2.95p per share (Motley Fool UK). The next cash payment is scheduled for 15 May 2026 (Stockopedia). For traders, this timing dynamic often creates a post-ex-div dip, though the magnitude depends on broader market sentiment.

Long-term price targets

Berenberg (Harry Goad) lowered its target to 120 GBp from 128 GBp while maintaining a Buy rating (TipRanks). The high target across major aggregators sits around 150 GBX, with the low near 110 GBX (MarketBeat). The spread reflects uncertainty about whether Taylor Wimpey can restore earnings growth or whether the dividend cut announced for 2025 (£0.08 versus £0.09 in 2024) signals deeper structural challenges.

Market influences

The 2025 dividend of £0.08 represented a 19.45% decrease from the prior year (Investors Chronicle). FT Markets data shows the 2024 dividend at 0.09 GBP with a 2025 forecast of 0.09 GBP, suggesting the cut was more pronounced in reported figures than some consensus estimates anticipated (FT Markets). Investors will want to watch whether the company reaffirms, increases, or cuts the 2026 dividend when interim results are published.

What this means: the bears point to payout ratios and earnings pressure; the bulls point to a beaten-down valuation and a management team that has historically prioritized shareholder returns. The next annual report will be the pivotal data point.

The upshot

The 2025 dividend cut to £0.08 from £0.09 (19.45% decline) signals management acknowledging a harder earnings environment — not a sign of financial distress, but a signal that the payout may need to stay compressed until margins recover.

Is TW a good long-term investment?

Long-term investors face a classic yield-versus-growth trade-off. The stock’s 5-year average dividend yield of 8.57% and 10-year average of 12.19% show that TW. has historically been a reliable income vehicle (StocksGuide). However, the current payout ratio of 155.50% raises questions about whether the current yield is financed by cash flow or debt — a distinction that matters for long-term sustainability.

Growth potential

The valuation metrics tell a story of a stock trading at a discount. Current P/E stands at 52.13, but the 2025 forecast P/E is 12.61 — a dramatic compression that either signals massive earnings recovery or current market pessimism (StocksGuide). Price-to-book of 0.72 means the market values Taylor Wimpey at less than its book value per share, which can mean either a bargain or a value trap depending on asset quality (Stockopedia).

Risk factors

  • UK housing market slowdown with affordability constraints
  • Payout ratio exceeding 100% in recent years
  • Forecast EPS growth of -25.31% (Stockopedia)
  • Regional variations: the US ADR (TWODY) trades differently, with a 7.44% yield at different price levels

Historical performance

Performance in 2025 came in at 6.82% (StocksGuide) — modest but positive in a year when many UK housebuilders faced headwinds. The stock’s decline from £1.04 in December 2025 to around 87.86p currently reflects both the post-ex-div pressure and broader sector sentiment.

The trade-off: for income-focused investors who need yield now, TW. remains competitive. For total return investors, the path to price appreciation depends on either a housing market recovery or significant margin improvement — neither of which is guaranteed based on current guidance.

Has TW cut its dividend?

Yes, the dividend has been cut. Taylor Wimpey paid £0.09 per share in financial year 2024, dropping to £0.08 per share in 2025 — a decline of approximately 19.45% (StocksGuide), (Investors Chronicle). This followed an interim dividend of 4.67p paid in November 2025 (Motley Fool UK).

Recent dividend history

The trajectory is notable: the 2024 total dividend of £0.09 was itself down slightly from prior years, with FT Markets citing a -1.25% YoY change for 2024 before the sharper 2025 cut (FT Markets). The final 2025 payout of 2.95p went ex-dividend on 2 April 2026, with payment due on 15 May 2026 (Motley Fool UK), (Stockopedia).

Yield comparison

The dividend yield story remains strong relative to the broader market. Trailing yield stands at 8.85%, while some aggregators cite figures closer to 10.7% (Stockopedia), (Motley Fool UK). The 5-year average yield of 10.0% and 12-month forecast yield of 8.72% suggest the current payout is roughly in line with recent history (StocksGuide), (Stockopedia).

Payout sustainability

The payout ratio of 155.50% in the last financial year is the red flag here (StocksGuide). When dividends exceed earnings, companies typically either reduce the payout, grow into it, or draw on reserves. Taylor Wimpey’s 3-year smoothed payout ratio of 83.79% is more sustainable but still elevated (StocksGuide). Investors should watch the next interim results for guidance on whether the 2026 dividend will be maintained, increased, or cut further.

The catch: a high yield that isn’t backed by earnings is a yield trap waiting to spring. The dividend cut in 2025 suggests management is being honest about the environment — but also that the income story has an expiration date if earnings don’t recover.

Why this matters

A payout ratio above 100% means Taylor Wimpey is returning more cash than it generates — sustainable short-term, but a signal that either earnings must recover or the dividend faces further cuts before 2027.

Why is TW share price falling?

The decline from £1.04 in December 2025 to the current 87.86p level reflects a combination of post-ex-dividend mechanics and broader sector concerns. Understanding the drivers matters for anyone deciding whether the dip is a buying opportunity or a warning sign.

Recent price drivers

Several factors have weighed on the shares: the 19.45% dividend cut announced for 2025 sent a negative signal to income-focused investors who had priced in a higher payout. The ex-dividend date of 2 April 2026 mechanically reduced the share price by roughly the dividend amount for new buyers (Motley Fool UK). Combined with BofA’s target cut to 90 GBX — below current trading levels — the market is clearly pricing in more caution than optimism (MarketBeat).

Sector pressures

UK housebuilders broadly face headwinds from affordability constraints, rising mortgage rates, and recent changes to stamp duty that have dampened transaction volumes. Taylor Wimpey’s position as a major UK-focused builder means it has limited geographic diversification to offset these pressures. The FTSE 100 listing provides exposure to international investors, but the underlying earnings story is tied to UK housing starts and completions.

Company-specific issues

Beyond sector dynamics, Taylor Wimpey faces company-specific questions: can it maintain margins while building the number of homes required under government targets? Does its land bank strategy position it well for a recovery, or will it be forced to discount? The payout ratio above 100% adds a financial flexibility constraint that some competitors don’t face to the same degree.

Bottom line: What this means: the share price reflects both the mechanical impact of the dividend cut and genuine uncertainty about the company’s ability to grow earnings back to levels that justify the current yield. For contrarian investors, the low valuation (P/B of 0.72) suggests the market has already priced in significant bad news.

Upsides

  • Trailing yield of 8.85-10.7% — among the highest in FTSE 100
  • Price-to-book of 0.72 — market may be overly pessimistic
  • Mean consensus OUTPERFORM from 20 analysts
  • FTSE 100 listing provides index-tracking demand
  • Berenberg maintains Buy despite target trim

Downsides

  • Payout ratio of 155.50% — unsustainable without earnings recovery
  • 2025 dividend cut of 19.45% signals margin pressure
  • Forecast EPS growth of -25.31%
  • BofA target of 90 GBX below current price
  • UK housing market headwinds show no immediate sign of easing

What analysts and data say

For a stock like Taylor Wimpey, the quotes from financial commentators put flesh on the bones of the spreadsheet data.

Analysts give Taylor Wimpey an average rating of “Moderate Buy” from 10 firms (5 buys, 5 holds) with an average 1-year price target of GBX 121.

— MarketBeat Staff (Analyst Aggregator)

Berenberg analyst Harry Goad lowered the firm’s price target on Taylor Wimpey to 120 GBp from 128 GBp and keeps a Buy rating.

— TipRanks (Analyst Tracker)

It’s now a jaw-dropping 10.7%, on a trailing basis.

— Motley Fool UK (Financial Commentary)

The pattern across these sources is consistent: analysts see value but want proof that earnings can recover before becoming more constructive on the price target.

Bottom line: Taylor Wimpey remains a high-yield play for income investors who believe in the UK housing recovery, but the 2025 dividend cut and elevated payout ratio mean the yield is not guaranteed to last. Growth-focused investors should wait for clearer earnings guidance. For UK income seekers, TW. still offers one of the market’s most generous yields — provided they monitor payout sustainability with each quarterly update.

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Frequently asked questions

What is the current TW share price?

As of the most recent data, Taylor Wimpey (TW.L) trades at 87.86p on the London Stock Exchange, with a market capitalisation of £3.08 billion and daily volume exceeding 38 million shares.

How has TW share price performed historically?

The stock traded at £1.04 on 18 December 2025 before declining to around 87.86p by mid-April 2026. Performance for 2025 came in at 6.82% (StocksGuide). The 5-year average dividend yield stands at 10.0% (StocksGuide).

What is Taylor Wimpey dividend policy?

Taylor Wimpey paid £0.09 per share in 2024, cutting to £0.08 per share in 2025 — a 19.45% decline (Investors Chronicle). The trailing dividend yield is approximately 8.85% (Stockopedia), with some sources citing closer to 10.7% on a trailing basis (Motley Fool UK).

Is TW listed on FTSE 100?

Yes, Taylor Wimpey is a constituent of the FTSE 100 index, giving it significant weight in UK pension and index-tracking fund flows.

What influences TW share price?

The primary drivers are UK housing market conditions, mortgage affordability, dividend sustainability, and analyst sentiment. Recent pressure has come from the 2025 dividend cut, elevated payout ratios, and mixed broker targets ranging from 90 GBX (BofA) to 120 GBX (Berenberg) (MarketBeat).

What is the next dividend date for Taylor Wimpey?

The ex-dividend date for the final 2025 payout was 2 April 2026. The payment date is scheduled for 15 May 2026 (Stockopedia).

What do analysts forecast for TW?

MarketScreener’s 20-analyst consensus points to an OUTPERFORM rating with an average target of 1.173 GBP (MarketScreener). MarketBeat’s 10-firm consensus shows Moderate Buy with a 121 GBX target (MarketBeat). Individual targets range from 80p (TipRanks) to 150 GBX (MarketBeat).