Shares in Taylor Wimpey (LON:TW) have jumped in London in today’s session as the company announced plans to hike its payout to shareholders next year. The blue-chip housebuilder further unveiled its new goals for the next five years.
As of 14:32 BST, Taylor Wimpey’s share price had added 3.76 percent to 202.40p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.05 percent higher at 7,714.83 points. The group’s shares have added more than seven percent to their value over the past year, as compared with a near four-percent rise in the Footsie.
Group updates on strategy
Taylor Wimpey announced in a Capital Markets Day update that it was enhancing its payout to shareholders to approximately 7.5 percent of Group net assets, up from five percent, and equating to at least £250 million per annum, up from at least £150 million per annum. The group further unveiled 2019 special dividend of £350 million, taking 2019 total dividends to about £600 million.
Taylor Wimpey also updated investors on its strategy and set new goals for the next five years, including an increase of return on net operating assets to 35 percent and maintaining operating profit margins at about 21-22 percent. The company also plans to reduce its landbank years by about a year to 4-4.5 years.
Analysts on Taylor Wimpey
The 13 analysts offering 12-month price targets for Taylor Wimpey for the Financial Times have a median target of 220.00p on the shares, with a high estimate of 269.00p and a low estimate of 160.00p. As of May 11, the consensus forecast amongst 16 polled investment analysts covering the blue-chip housebuilder has it that the company will outperform the market.