How to Buy Taylor Wimpey Shares UK – with 0% Commission

Taylor Wimpey plc is a UK-based company that specializes in housebuilding. The firm was hit hard in the midst of the 2008 financial crisis and is now worth just a fraction of its former glory.

With that said, Taylor Wimpey is still a multi-billion pound company and a constituent of the FTSE 100 index, so interest in its share price amongst analysts remains strong.

If you want to buy Taylor Wimpey shares online today, this guide will show you what you need to do. We’ll take a look at the company’s past performance, round-up whether it’s a good buy or not, and show you the top brokers to buy Taylor Wimpe shares.

Step 1: Find a UK Stock Broker to Buy Taylor Wimpey Shares

As a UK investor, you have hundreds of share dealing sites to choose from – most of which give you access to Taylor Wimpey stocks. After all, the firm is a FTSE 100 constituent and so its shares are offered by most brokers.

However, you do need to spend some time researching the credentials of the platform in question before opening an account. For example, look to see how much the broker charges to buy Taylor Wimpey shares and what payment methods it supports.

To save you hours of mundane research, we have hand-picked two of the best UK stock brokers to buy Taylor Wimpey shares.

Step 2: Research Taylor Wimpey Shares

As always, you need to perform some research before you make a financial commitment, whether you’re investing in Taylor Wimpey or similar companies like Barratt Developments or Kier. This is especially the case at the time of writing, where COVID-19-related economic uncertainties still remain in place and many investment markets are seeing high volatility. As such, we are now going to discuss what the future holds for Taylor Wimpey plc.

Before we do, let’s take a brief look at what Taylor Wimpey does and what its share price history looks like.

What is Taylor Wimpey plc?

Taylor Wimpey plc (ticker TW, ISIN: GB0008782301) is British homebuilder that was first launched in 2007. This was a result of a merger between two prominent UK housebuilders – George Wimpey and Taylor Woodrow. Since then, the company has gone on to become a multi-billion pound organization with a listing on the London Stock Exchange (LSE). In fact, even though the shares have plummeted in recent years, it is still a FTSE 100 constituent.

Nevertheless, Taylor Wimpey claims to build more than 15,000 homes annually – subsequently making it one of the largest developers in the UK. As we will uncover in more detail shortly, Taylor Wimpey was hit particularly hard by the pandemic. Revenues dropped by over 50% in the first 6 months of the year and home completions fell by a similar figure. This resulted in the firm reporting losses of almost £40 million in its year-half earnings report.

Taylor Wimpey Share Price History & Market Capitalisation

Since the firm completed its merger in 2007 – it has had a presence on the London Stock Exchange. With that said, it’s best to focus on its share price history in more recent times – so let’s explore where the firm was position five years ago. Back then, you would have paid just over 195p per share.

Since then, Taylor Wimpey has hit heights of 231p – reaching this feat in February 2020. This represents modest growth of 18% in less than five years of trading.

However, the shares have since taken a major hit on the London Stock Exchange – with an October 2020 price of 116p. This means that in just eight months, Taylor Wimpey shares have dropped by over 50%. This translates into a current market cap of £4 billion.

Taylor Wimpey EPS and P/E Ration

At the time of writing, the earnings per share of Taylor Wimpey is 20.60, with an EPS growth of -5%. Taylor Wimpey’s p/e ratio is 9.5.

Taylor Wimpey Shares Dividend Information

Taylor Wimpey has been paying dividends since 2012. Last year, for its 2019 final dividend yield of 3.8p per share, this was planned to be paid in May 2020. In addition to this, there was also a planned special dividend of 10.99p per share – which was planned for July.

This would have resulted in a total outlay of approximately £485 million. However, both the aforementioned dividend payments were subsequently cancelled by Taylor Wimpey management in March 2020.

This was on the basis of the disruption the firm experienced as per the coronavirus lockdown. Crucially, this dividend suspension will remain the case until further notice. As such, the only way that you will be able to make money from your Taylor Wimpey share purchase is via capital gains.

Should I Buy Taylor Wimpey Shares?

As noted above, Taylor Wimpey shares have plummeted in 2020 as the firm was hit hard by the pandemic. Does mean that its stocks are a sell? Not necessarily. After all, if the company is eventually able to get back to pre-virus levels, the upside potential is huge. On the flip, this might not be the case at all – so enhanced research is key.

Wimpey what you need to know before you buy Taylor Wimpey shares online.

Tough Year-Half Results

Let’s start with the financials by looking at Taylor Wimpey’s first-half results of 2020. As was to be expected, the numbers speak for themselves. Firstly, revenues took a major hit with a decline of 56% in comparison to the previous year. This subsequently translated into losses of almost £40 million.

This is a huge reduction from its previous profit of just under £300 million. Despite these losses, net cash levels are actually up from £392 million to just under £500 million. This is welcome news for stockholders as it will give Taylor Wimpey the best chance possible of weathering further disruptions in the near future.

Share Decline is a Result of the Lockdown

Although it’s never good to see revenue declines in excess of 50% – it is important to remember why this is the case. In the UK, lockdown measures were in place for months on end. During this time, not only were there disruptions for Taylor Wimpey in terms of its housebuilding operations – but real estate sales were virtually non-existent.

In turn, it makes sense that the wider property space took a hit. However, if and when Taylor Wimpey is able to get back to pre-virus levels – we could see a resurgence of its stock price. If this is the case, you can now buy the shares at a generous discount.

Good Balance Sheet and Order Book

As is the case with any company facing disruptions form the pandemic, the most important thing is having a strong balance sheet. Fortunately for Taylor Wimpey stockholders, the firm is sitting on almost half a billion pound in cash. Although debt has increased slightly from the year prior, this still only stands at about 20% of its cash reserves.

In addition to this, Taylor Wimpey has a strong order book moving forward. This is being further spearheaded by the Bank of England’s decision to keep interest rates at record lows.

Taylor Wimpey Shares Buy or Sell?

Although the investment decision is yours to make – it’s difficult to get away from Taylor Wimpey shares based on current prices. Sure, the shares have plummeted in 2020 and group revenues took a major hit. But, this was at no fault of Taylor Wimpey. On the contrary, the pandemic left the firm unable to resume its homebuilding endeavours for several months.

Plus, demand from potential house buyers was virtually zero during the lockdown – which in turn had a further impact on Taylor Wimpey shares. Crucially, this FTSE 100 stock has a balance sheet that consists of almost £500 million in cash reverses. This should be more than enough to see the firm through troubling times – even if further lockdowns come to fruition.

The Verdict?

If you’re keen to buy Taylor Wimpey shares right now, the process will take you no more than 10 minutes. The online broker – which is licensed by the FCA and partnered with the FSCS, allows you to instantly deposit funds with a debit/credit card or e-wallet. Not only this, but the broker charges nothing in the way of share dealing fees or monthly subscriptions – so you can buy Taylor Wimpey in a super cost-effective and convenient manner.

Simply click the link below to get started!

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