Latest news with #TaylorWimpey
Yahoo
2 days ago
- Business
- Yahoo
£15k invested in these dividend shares could yield an enormous second income!
Investing in a broad range of stocks can be a great way to target a long-term second income. History shows that holding dividend shares spanning different sectors and geographies can reduce risk and provide a stable return over time. Here are two high-yield dividend stocks that could help diversify an investor's portfolio: Dividend share Sector Dividend yield Taylor Wimpey (LSE:TW) Housebuilding 8.6% Bluefield Solar Income Fund (LSE:BSIF) Renewable energy 9% As you can see, the prospective yields on these stocks smash the broader average for FTSE 100 and FTSE 250 shares (both at 3.4%). Dividends are never guaranteed, but if broker forecasts are accurate, a £15,000 lump sum invested equally across them would produce a £1,320 passive income this year alone. Here's why I think both shares are worth considering. Taylor Wimpey Latest trading numbers from Barratt Redrow have reminded investors of the ongoing perils facing the housebuilders. On Tuesday (15 July), it said completions were a disappointing 16,565 last year, missing a targeted 16,800-17,200. This was due to 'consumer caution and mortgage rates not falling as quickly as hoped', the Footsie company noted. Conditions may remain tough as the UK economy splutters. But I'm confident Taylor Wimpey's industry-leading balance sheet means it should still at least be able to continue paying large dividends. It remains highly cash generative, and ended 2024 with more than half a billion pounds (£564.8m) in net cash. That's not to say I believe Taylor Wimpey's recent sales revival is about to run out of steam, though. Its order book — which rose to 8,153 homes as of 27 April from 7,742 a year earlier — could continue building as interest rates seemingly have further to fall. I'm certainly expecting the FTSE 100 share to perform strongly over the long term, helped by intensifying mortgage market competition and planned changes to home loan regulations. These include allowing lenders to offer more mortgages based on more than 4.5 times a homebuyer's annual income. This measure alone could help a further 36,000 first-time buyers get onto the property ladder. As the UK's population steadily grows, I'm optimistic housebuilders like this will remain excellent dividend payers. Bluefield Solar Income Fund Bluefield Solar also stands to gain from falling interest rates that reduce borrowing costs and boost asset values. But like Taylor Wimpey, renewable energy stocks like this also face other dangers over the next year. In this case, the costs to build green energy projects are rising, casting doubts over their future profitability and plans for expansion. But on balance, I think this FTSE 250 investment trust is another great dividend share to consider. By focusing on energy-generating assets, it can expect earnings to remain stable over time, underpinned by the stable nature of energy demand. This is especially attractive today, with trade tariffs threatening to throw the global economy (and with it profits for many UK shares) off the rails. A reason why I like Bluefield Solar specifically is its strategy of investing mostly in Britain, where government policy is especially supportive of the renewable energy sector. Over the long term, I expect dividends here to rise strongly along with earnings, driven by growing demand for greener power sources. The post £15k invested in these dividend shares could yield an enormous second income! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has positions in Barratt Redrow and Taylor Wimpey Plc. The Motley Fool UK has recommended Barratt Redrow. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
3 days ago
- Business
- Yahoo
Which is better: £100,000 or a second income of £5,481 per year?
According to the bond market, £100,000 in cash and a second income of £5,481 per year are roughly equivalent in value. But I'm not so sure – I think the cash is better. Right now, a 30-year UK government bond comes with a 5.481% yield. But my suspicion is that investors with a long-term focus can do better in the stock market. Dividend stocks Buying bonds is one way of turning cash into passive income. But another way is by owning shares in companies that distribute their profits to shareholders as dividends. These are inherently riskier than bonds. The chance of just about any company getting into difficulties is higher than the UK government defaulting on its debt obligations. On the plus side, however, companies can – and often do – increase the amount they pay out to investors when things go well. With bonds, this just doesn't happen. Over 30 years, I think investors who buy dividend stocks have a chance to do better than 5.481% per year. But there are no guarantees and the key is selecting the right stocks. Taylor Wimpey Taylor Wimpey (LSE:TW) – with its 8.5% dividend yield – is an interesting example. I think the FTSE 100 housebuilder is in a good position to benefit from a long-term shortage in UK housing. Unlike its peers, the firm has managed to maintain its dividend over last couple of years. But this has involved the company paying out more than it has been making, which is risky. That can't go on indefinitely, but I don't think it needs to. With interest rates looking likely to fall and a need for more houses, I expect demand in the property market to pick up in the near future. Ultimately, Taylor Wimpey's policy of basing its dividend on its assets (rather than its cash flows) has given investors an unusually stable income. And I think it's worth considering right now. British American Tobacco Sometimes, however, big dividend yields can be risky. And I think that's the case with the 6.25% return on offer from shares in British American Tobacco (LSE:BATS). On the face of it, things look pretty good. Revenues have been relatively stable over the last five years and (unlike Taylor Wimpey) the firm's dividend is well covered by its cash flows. Beneath the surface, however, things are less positive. The company has been increasing prices to make up for declining cigarette volumes and I don't think is a long-term solution. The hope is that new products – especially nicotine pouches – can grow enough to offset the declines. That could happen, but I don't think a 6.25% yield is enough to offset the risk. Cash or income? Right now, I think £100,000 is worth more than a second income of £5,481 per year. That's mostly because I believe there are opportunities to do better in the stock market. Dividend stocks can be great investments, but it's important to think about the long term. High yields today don't mean much if they'll be gone in 10 or 20 years. Despite the risks, I think a diversified portfolio of equities could provide a better source of passive income than UK government bonds. So I think the cash is worth more right now. The post Which is better: £100,000 or a second income of £5,481 per year? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Stephen Wright has no position in any of the shares mentioned. The Motley Fool UK has recommended British American Tobacco P.l.c. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
BBC News
6 days ago
- Business
- BBC News
Anger in village of Normandy at plan for hundreds of new homes
Residents are being invited to an event to learn more about new plans for homes in a Surrey Taylor Wimpey is hoping to build new homes on fields in Normandy, near Bilbe, a Guildford Borough Councillor and resident near the site, said there was "a lot of upset" in the area over the number of homes in the proposed plans has not been confirmed, and the BBC has contacted Taylor Wimpey for comment. Mr Bilbe told BBC Radio Surrey he believed the development could be up to 700 homes."If we've got 1,100 houses in the village and you add 700 that's a 70 to 80% increase," he said. "The implications for sewage, water, infrastructure, traffic and electricity provision, they're very significant."I'm not against development, but I'm only in favour of balanced, sensible development ." 'Just ridiculous' Local residents were also sceptical. Nathaniel Knurowski said 700 homes would be "excessive", while Christine King said she was "absolutely horrified"."The traffic in this area is bad enough now without having any more homes put up," she said."Normandy is notorious for having problems with floods."To remove yet another part of the village with natural grass is just ridiculous."Wendy Blinco, general manager at the Normandy community shop and cafe, was concerned about the impact of a new parade of shops, which could be part of the development."This is a hub of the community and it's been a lot of hard work to get here," she said. The site had been considered by Guildford Borough Council for up to 1,100 new homes, but ultimately was not included in its local plan, which sets out where houses would be built in the Wimpey's information on the plans outlines that the site has existing road and footpath connections, and potential to link directly to the station at Wanborough rail station. The development would include 50% affordable homes, houses reserved for the elderly, and a new community hub, as well as potential for new education facilities.A public event for residents to find out more about the plans is being held on Friday at St Mark's Hall in Normandy from 14:00 BST until 19:00.
Daily Mail
13-07-2025
- Business
- Daily Mail
EXCLUSIVE 'They want to concrete us over': Furious locals in one of Britain's most desired villagers say they are under siege from 10 different newbuild estates which will box them in and 'dismantle their society'
Locals from one of the best places to live in Britain fear plans for developers to build thousands of new homes on green field land could 'dismantle the fabric of their society'. Residents from Eccleshall, Staffordshire, are furious at the proposals put forward by four major developers, which will turn over 200 acres of green space into ten new estates. They claim the new homes would double their population, lead to a strain on public services and destroy the community. 'The infrastructure can't cope with it as it is. The sewage is overflowing, the schools are full, the doctors surgeries are full, and we're thinking of importing about another 1,500 houses,' explained Susie Clowes, who has lived in Eccleshall for 45 years. 'It's a fantastic place to live, the press have labelled it as one of the best places in the country to live and since then the developers have pounced like locusts. 'We have no car park in the town. It's just very sad that this wonderful agricultural land that we've got, Grade II agricultural land is being torn up for houses and we'll never get it back.' The key developers are Blore Homes, Taylor Wimpey, Muller Property Group and Bellway Homes, and if plans go ahead it could see the town grow four times in size. Blore Homes have said they would build a surgery and a school to help with the increased population of the area but residents fear it's an empty promise. Martin Peet told MailOnline: 'At the Parish Council surgery last week they said there's no promise of building a school at all, and there's no promise of a new surgery. 'Apparently what's happened is they've said "We'll locate you a piece of land". 'So Staffordshire Borough Council have got to find the money to build a new school, they haven't got the money.' If the building goes ahead, it is also likely that 40 per cent of the new homes will be classified as affordable or social housing - a notion that residents fear will 'destroy' Eccleshall. 'The fabric of Eccleshall society, will be totally dismantled,' Mr Peet added. 'Because 40 plus is going to be social, the whole dynamic will change. We will no longer have that village feel, it will be gone.' This year, Eccleshall was named one of the best places to live in Britain because of its 'village feel'. David Whitaker, 61, who has lived in Eccleshall for 10 years told MailOnline: 'This place is so nice it's no wonder they're developing, but it will ruin it. Stephen Harding (pictured), whose property will look over one of the developments where 500 homes are expected to be built said the proposal has led to sleepless nights Residents claim the new homes would double their population, lead to a strain on public services and destroy the community 'It's appalling, it's a lovely place, it hasn't got the capacity to cope with all the developing that's going on. 'It's going to take away the honesty of the place and the feel good factor will go. 'It can just about cope now with everybody living here.' But not every resident is opposed to the plans, Mollie Feeney, 22, thinks it could provide an opportunity for younger people to step onto the property ladder. 'I think it's positive that they're doing it,' Ms Feeney told MailOnline. 'I was a first-time buyer a year and a half ago and I know that it is more accessible when you buy in a newbuild. 'It does seem to be the older generation that are disapproving of the plans but I really feel it's a generational divide.' The proposed developments would border the town and bring vast amounts of footfall to the area. Christine Easter, 76, who has lived in the area for 45 years, told MailOnline: 'It's the shock of actually seeing the planning coming in for it on fields. 'They're too big, there's too many. We've already had three housing projects that have gone. When we moved in there were field behind us, now there's houses there. 'It will affect parking and the doctors and the schools aren't going to cope.' Stephen Harding, whose property will look over one of the developments where 500 homes are expected to be built said the proposal has led to sleepless nights. Mr Harding said: 'There's four big developers. If they have their way they'll concrete us to Stafford. 'There's been no offer of intended development of infrastructure from the council. The town is busted, its got as far as it can go. 'Gradually over the years the town has filled, filled and filled. We had a battle to have two windows on the side of our house, there's no consistency with what was allowed in the 80s and what's happening now.' But despite constant campaigning locals feel overlooked and Mr Peet feels more action needs to be taken. 'I've downloaded the rules for a referendum and it looks like we're going to have to go to a referendum. It's non-binding but it will send a signal out,' he told MailOnline. 'We don't want this, we can't cope. I rang last week for a doctors appointment and it was four weeks. The grids lift every time we have a bit of rain. 'All these sites on the periphery it will just mean two to three thousand cars will be going to Eccleshall everyday. 'Six years ago we had 950 houses now we have 15,000. To make Eccleshall four times the size it is today is wrong.' A spokesperson for Taylor Wimpey said: 'Taylor Wimpey will deliver 150 new homes, 60 of which are affordable, as part of the proposed development for Eccleshall. 'Following a public consultation on our proposal, we have reviewed and incorporated, where possible, the feedback received to ensure it reflects the views of the wider community. 'The proposal includes a large area of public open space, which is currently private land, designed to include a park and village green for the benefit of both existing and new residents. 'All landscaping has been carefully considered to respect the Eccleshall Conservation Area and include new grassland and wildflower beds, native thicket, and tree planting to contribute to biodiversity gains on site.' A spokesperson for Stafford Borough Council said: 'We have not received any planning applications for hundreds of new homes in Eccleshall in the last few years.'
Yahoo
12-07-2025
- Business
- Yahoo
How long does it take to turn £20,000 into a £1,500 a year second income?
Turning £20,000 cash into a £1,500 annual second income requires a return of 7.5% a year. And there are a number of FTSE 100 stocks that can make this happen almost immediately. These are shares in companies that are big, well-established, and have been around for a long time. And in some cases, they're still growing even today. One of the nice things about the FTSE 100 is there are a number of stocks with high dividend yields. So investors looking for a 7.5% yield don't have to risk it all on just one company. There are life insurance firms, tobacco businesses, housebuilders, and mining companies. These are from different industries and have operations all around the world. With a bit of weighting, it's possible to build a reasonably well-diversified portfolio of FTSE 100 stocks that offers a 7.5% dividend yield. Examples are: Stock Portfolio Weight Dividend yield Weighted yield Legal & General 30% 8.49% 2.55% Taylor Wimpey 27% 8.4% 2.27% British American Tobacco 25% 6.48% 1.62% BP 18% 6.07% 1.09%7.53% This is based on the most recent shareholder distributions. But dividends are never guaranteed and companies can – if they want to – decide to reduce, suspend, or cancel returns to investors. One example is Taylor Wimpey (LSE:TW) — the stock I think investors interested in FTSE 100 housebuilders should be looking at. The company's profits tend to fluctuate quite a bit as changes in interest rates affect demand for mortgages – and therefore, houses. This shows up in the company's sales and profits. Since 2022, both revenues and earnings per share have fallen and it's no accident this has coincided with a period of higher interest rates. Unusually however, that's not the main thing for Taylor Wimpey shareholders to pay attention to. The firm's dividend policy's based on its net assets, rather than the cash it generates. That makes it a more resilient income stock than some other UK builders. But it doesn't protect the dividend indefinitely – and May's distribution was lower than the previous year. This is why investors – even ones focused primarily on passive income – need to consider a company's long-term prospects. And there are reasons to be optimistic about Taylor Wimpey. Most obviously, it operates in a market where demand's set to be strong for a long time. The UK has a big shortage of housing and this isn't going to change any time soon. The dividend might be higher or lower in any given year, but I expect the fluctuations to be less dramatic than some of its competitors and that makes it worth considering. High dividend yields are, as a rule, a sign investors are concerned about the company's long-term prospects. And while I think this can be justified, Taylor Wimpey looks unusually resilient to me. In general, the FTSE 100's made up of businesses that have been around for a long time. And that means they are – by definition – relatively successful. There are always things that can go wrong and some stocks are clearly riskier than others. But the UK stock market's where I think investors trying to generate a second income should look. The post How long does it take to turn £20,000 into a £1,500 a year second income? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Stephen Wright has no position in any of the shares mentioned. The Motley Fool UK has recommended British American Tobacco P.l.c. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
