At the risk of this being me talking to myself, I am assuming people will look here going forward so here are initial thoughts from Taylor Wimpey 2020 earnings results.
First some key bullet points from an investment perspective:
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Revenue down 35.7% and operating profit down 64.7%
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Still profitable for the year, 225.3m compared with 662.3m 2019.
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Net cash increased from 545.7m in 2019 to 719.4m in 2020.
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Adjusted EPS down 68% from 20.3p to 6.5p
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NAV of share up 9.5% from 100.5p to 110p
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Dividend reinstated with policy of 7.5% of net assets (around 8.25p on current NAV)
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Based on this 8.25p and current price of 170p it would be about 4.85% dividend, but in 2022 could be way higher see 2 points below for excess capital.
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2020 Final ordinary dividend payment in May 2021, 4.14p a share
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2022 will start to return excess capital either through special dividends or share buybacks, to be announced Feb 2022 FYR.
Profit and most results down on 2019 as expected due to less houses being built with lockdowns and covid rules. Still strong demand though and expect strong demand in 2021 and onwards. I would reckon the fact they built/sold less means there is also room to catch up profit wise on 2020 whether thats building more or just higher prices. Still very healthy business with cash in the bank and resuming dividends. Bought some land but I was partly expecting more, perhaps they have enough and keeping extra cash is more prudent in short term.
For I was toying with idea of selling TW couple months back as I got in a a great price but now I am keeping hold for now, it is not a large position and also I am not sure of many places for me to put the funds so this can now form part of my dividend pie rather than my ‘rebound’ pie, as the dividends are at a healthy level I am happy to hold. Key things for me are dividend is back, cash is very healthy and the NAV is nicely up.