The Taylor Wimpey (LSE: TW) share price has had a superb 12 months, rising 48.59%. And the enjoyable simply received’t cease. It’s up 9.28% within the final week. Plus, I’m benefiting from its trailing 5.9% yield.

I’m comfortable for a number of causes. The apparent one is that I purchased the FTSE 100 housebuilder’s shares 3 times final 12 months – twice in September and as soon as once more in November. Taylor Wimpey shares aren’t my finest performer over the past 12 months, however they’re not far off.

The second purpose I’m comfortable is that I researched the inventory rigorously earlier than I bought it, and determined it was a no brainer purchase. Which suggests my funding mind’s in the appropriate place, at the least generally.

I like this FTSE 100 inventory

The shares regarded good worth, with a price-to-earnings ratio of simply six or seven instances earnings. The yield was stellar, nudging 7%. I assumed my timing was proper too, as I made a decision that rate of interest cuts have been simply not far away with inflation beginning to slide.

I made a decision that when the Financial institution of England began slicing base charges, cheaper mortgages would revive the housing market. On the identical time, high-yielding UK dividend shares like this one would look much more engaging, as financial savings charges and bond yields retreated. That state of affairs’s taken longer to pan out than I anticipated

Since Taylor Wimpey additionally had a stable stability sheet which allowed it to outlive the latest downturn, nothing may cease me.

I’m nonetheless getting my dividends

Rival FTSE 100 housebuilders have additionally had a good 12 months, however nothing like Taylor Wimpey. Shares in Barratt Redrow are up a stable 16.46%. Vistry Group‘s up 29.88%. Vistry would have achieved higher, however for latest self-inflicted issues.

After such a powerful run, I don’t anticipate Taylor Wimpey’s shares to rise one other 50% over the following 12 months. Nonetheless, with inflation down to 1.7% and the Financial institution of England anticipated to chop base charges in November and December, the outlook is vivid.

The draw back is that these two price cuts now look priced into the shares. If there’s any disappointment on the rate of interest entrance, they may shortly give up their good points. I think there’s a little bit of volatility to return.

Many consider the development sector will profit from Labour’s housebuilding plans, however I’m cautious. I simply can’t see how we will all of a sudden whip up 1.5m UK properties within the subsequent 5 years. That is probably not so unhealthy for Taylor Wimpey although. Properties look set to stay in brief provide, bolstering demand, sale costs and income.

Taylor Wimpey isn’t as low cost because it was, with a trailing P/E of 16.77 instances earnings. The price-to-sales ratio is 1.7, that means traders are primarily paying £1.70p for every £1 of gross sales it makes.

I received’t purchase extra at present. The inventory now makes up greater than 5% of my portfolio, which is about proper. As an alternative, I’ll sit tight and reinvest each dividend that comes my means. With the shares forecast to yield 5.63% this 12 months and 5.78% in 2025, I’m anticipating a gentle stream of them.