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Taylor Wimpey upgraded to a ‘buy’ for growth seeking investors

21st August 2014 Print

Sheridan Admans, investment research manager at The Share Centre, explains why Taylor Wimpey has been added to our ‘buy’ list.

“As Taylor Wimpey focuses on delivering a strategy which it looks set to achieve, coupled with improving UK economics and emphasis on returning capital to investors, we are adding the stock to our ‘buy’ list. Like several house builders Taylor Wimpey looks good value on a number of valuation metrics at present.

“Interim results showed the firm is making progress towards meeting its medium term targets. Performance in the period has resulted in Taylor Wimpey increase its capital returned to shareholders by £50m to £250m. This should boost the income yield to around 7%. However, investors should note this level of income can’t be relied on as it includes a return of capital and the stock is more suitable for those seeking growth.”