Taylor Wimpey

Taylor Wimpey Dividend Analysis and Summary

• Dividend declared: Final dividend of 2.95p per share (FY25), subject to AGM approval.
• Ex-dividend date: 02/04/2026 (derived from record date below; the prior business day given UK market holidays on 3 and 6 April).
• Record date: 07/04/2026.
• Payment date: 15/05/2026.
• Total ordinary dividend for FY25: 7.62p per share (vs 9.46p in FY24; down 19.5%).
• Cash cost of FY25 ordinary dividends: c.£270m (interim c.£165m + proposed final c.£105m).
• Share buyback: £52m, intended to complete by end-June 2026.
• Total distribution aligned to policy for FY25: c.£322m (ordinary dividends + buyback).
• Distribution policy (updated): return 7.5% of net assets p.a. (or at least £250m) in two instalments, with a minimum of 5.0% of net assets via the ordinary dividend and a further 2.5% via either dividend or buyback.
• DRIP available for shareholders.

• Earnings cover: FY25 adjusted EPS 8.0p vs DPS 7.62p (~1.05x cover). On a statutory basis (EPS 2.8p), the dividend is not covered due to large exceptional charges.
• Cash and liquidity: Year-end net cash £342.6m (down from £564.8m), with an undrawn £600m RCF. Cash conversion fell to 63.7%, reflecting working capital outflows (lower land creditors) and timing.
• Near-term profitability: FY26 adjusted operating profit guided to ~£400m (vs £420.6m in FY25) with lower margins; H1 weighted c.40% of completions.
• Exceptional cash needs: Building safety remediation cash spend in FY26 of c.£150m; provision increased by £225.8m in FY25, indicating ongoing cash demands.
• Policy support: The dividend is anchored to the balance sheet via the “5% of net assets” ordinary dividend floor and 2.5% via buyback/dividend, rather than earnings alone. With FY25 net assets of £4.19bn, 7.5% equates to ~£314m (broadly in line with the c.£322m FY25 distribution).
• Assessment: The ordinary dividend appears sustainable at least at the policy floor (5% of net assets) given balance sheet strength and facility headroom. However, weak statutory earnings, softer FY26 margins, and remediation outflows suggest limited headroom for growth near term; the buyback is the likely flex lever.