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I think we can all agree that the market right now is really hot.
"Homes are selling at the fastest pace ever"
https://www.rightmove.co.uk/news/articles/property-news/busiest-ever-housing-market-buyers-sellers
Regarding the end of the government schemes, I'm also not too concerned. This is a quote from the article:
Tim Bannister adds: “Housing market activity remains high in Scotland where there has been no extension to the Land and Buildings Transaction Tax holiday, which has now come to an end. This suggests that the same could happen when the tax holidays start to come to an end in England and Wales from the end of June.”
Lots of insightful posts. My view is that the trading statement is as expected. The future unknowns will be the impact once various government schemes are tapered off and impact on sales and completions. I have bought into TW. for the long haul as believe it is a good company that is focused on stability. As far as I am concerned dividends are a bonus as and when they occur. So much talk of a special bonus that was never on the cards but future trading updates will give indications for 2022. The pandemic is not over and keeping a healthy cash balance might just help to negate what might lie ahead. I will be happy to see a gradual increase in the share and I am confident (barring a black swan event) this will happen. Just like their houses let's be content with solid foundations.
Johnson,
When a company changes their stance, as TW have done then, for me, it raises questions as to why the change. For several months they have been saying they will review the special dividend in 2021, this year. Now they have changed their stance to reviewing it in 2022, next year.
Also in their Nov 2020 TU
"We will review the special dividend in 2021 for payment in 2022."
https://otp.tools.investis.com/clients/uk/taylor_wimpey1/rns/regulatory-story.aspx?cid=229&newsid=1426983
I think they changed their stance on the review of the special dividend being this year because of the gov backed schemes ending in Sept. Plus recently there were comments from scientists that there maybe another covid wave later this year.
stt1
2nd March
The Group has a robust balance sheet and a growing high-quality landbank, which will enable us to grow the business whilst generating compelling returns. The actions we have taken in 2020, and the strong embedded margin in the landbank, underpin our confidence in achieving our medium term target to deliver operating profit margins of c.21-22%. Our focus on retaining momentum in outlet openings and our incremental land acquisitions leave us well positioned to deliver strong volume growth in the medium term. With a continued focus on costs and efficiency, the Board believes the Group is well positioned for strong progress and to deliver enhanced shareholder value in the years ahead.
Sounds good to me
"As we look forward, it remains our intention to return excess capital to shareholders in line with our policy"
I am happy enough with that bit. Even after purchasing more land this year as they intend to I am sure there will be a decent amount of Net cash left over. The current lower share price gives me a chance to buy more shares.
Johnson,
" there was never any intention of paying a Special dividend in 2021."
It's not the when it will be paid which is the issue - it's been clear that they will intend to pay it next year.
The issue is WHEN it will be REVIEWED. Today's TU differs from their previous statement in Jan.
Your post this morning 7.46 states.
"We will review the special dividend in 2021 for payment in 2022."
which you correctly stated from their Jan TU.
The REVIEW of the special dividend has now been put back a year. That tells me that they are not currently confident of their excess cash, hence why the review has been delayed a year.
stt1
We ( Me & You & TW ) agree that there was never any intention of paying a Special dividend in 2021.
The special Dividend will be based around Net cash in March 2022.
You can read the Quote below as: " It remains our intention as in pre-covid times to return excess capital to shareholders in line with our policy. At the time of full Year results in March 2022 we will see what Net cash we have in the pot and we will pay you a special Dividend in 2022 based around that "
The 1st line says it remains their intention to return excess capital to shareholders. The last line says it will review the level of excess capital at the time for a payment in 2022. I am thinking positively and to me it is saying we will pay you in 2022 but we don't know how much yet.
Quote:
As we look forward, it remains our intention to return excess capital to shareholders in line with our policy. We are not planning to make a capital return in 2021 and will review the potential level of excess capital at the time of our 2021 full year results in March 2022, for payment in 2022.
Johnson36
"Everyone knew there wasn't going to be a Special Dividend this year. It can not be clased as negative News because the market and all its investors knew already."
The special divi is negative news.
In January they said they will REVIEW the special dividend THIS year.
Now they are saying they will REVIEW the special dividend NEXT year, in 2022.
So the REVIEW for the special dividend has been put back a year.
Jan 14th:
"As previously stated, we expect to recommence ordinary dividend payments in 2021, starting with the payment of the 2020 final dividend. We will review the special dividend in 2021 for payment in 2022."
https://otp.tools.investis.com/clients/uk/taylor_wimpey1/rns/regulatory-story.aspx?cid=229&newsid=1444360
Today:
"There will be no special dividend in 2021, but the housebuilder said it does intend to return excess capital to shareholders and will review the position with the next final results in March 2022."
https://www.proactiveinvestors.co.uk/companies/news/947333/taylor-wimpey-says-sales-and-prices-rise-in-healthy-housing-market-947333.html
thanks for the update.
scoopy
Everyone knew there wasn't going to be a Special Dividend this year. It can not be clased as negative News because the market and all its investors knew already.
The last time TW talked about it was on the 14th January Trading Statement.
QUOTE:
As previously stated, we expect to recommence ordinary dividend payments in 2021, starting with the payment of the 2020 final dividend. We will review the special dividend in 2021 for payment in 2022.
I don't think they could of made that any clearer, it even said " as previously stated " !
https://www.lse.co.uk/rns/TW./trading-statement-17plp9nfljon8wg.html
No Special Dividends this year! will have to wait till 2022.