With its strong site inventory, disciplined cost base and cash‑generative business, FTSE 100 housebuilder Persimmon (LSE: PSN) looks a prime example to me.

So what sort of return could income‑focused investors be looking at?

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, nor does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

How much dividend income?

Dividend yields can change over time, as share prices and annual payouts alter. However, analysts forecast that Persimmon’s current 5.5% return will rise to 7% by 2028. By comparison, the average FTSE 100 dividend yield is now 3.1%.

So fully utilising the £20,000 ISA allowance in the stock could make £20,193 in dividends after 10 years. The number is based on the forecast 7% as an average and on the dividends being reinvested into the stock — known as dividend compounding.

Over the course of the 30-year standard long-term investment cycle, these payouts could rise to £142,330. Including the original £20,000 investment, the value of the holding would be £162,330 by then.

And that would be generating £11,363 a year of income from dividends alone!

What about share price gains too?

I do not expect share price gains from my dividend-oriented ISA stocks, but if they happen, great. Whether they will or not historically depends on two key factors.

First, whether there is a gap between the share’s current price and its ‘fair value’, which reflects the true worth of the underlying business. The gap is important because over time asset prices (including shares) tend to converge to this fair value.

The fair value number itself is best determined in my experience by running a discounted cash flow (DCF) analysis. It forecasts the business’s cash flows and then discounts them back to today to give a per-share value.

Depending on the relative certainty of those cash flows, the discount applied varies. This, and other underlying assumptions, cause various analysts’ DCF outcomes to differ sometimes. But based on my DCF modelling, including an 8.8% discount rate, Persimmon looks 53% undervalued at its current £10.91 price.

This suggests a fair value of £23.21 — more than double where it is now. So this implies a terrific buying opportunity if those DCF assumptions prove accurate.

How strong does the business look?

The second factor that determines whether this price-to-value gap will close is a firm’s earnings profile. That is, the gap is much more likely to close if a business makes consistently higher profits over the long-run.

A risk here for Persimmon is any spike in interest rates, as this could deter new home sales. Another is a further surge in the cost of living that would do the same.

However, analysts project that the firm’s profits will increase by a yearly average of 12.2% to the end of 2028 at minimum.

My investment view

Persimmon’s dividend outlook, cash‑rich operations and long‑term growth prospects make it well worth the consideration of investors, in my view.

For me, I already have a holding in the same sector (Taylor Wimpey), so buying another would unbalance my portfolio. However, Persimmon’s combination of tax‑free compounding and undervaluation keeps it firmly on my radar.

And I also recently spotted other highly undervalued stocks with very high dividend yields in other sectors.

Should you invest £5,000 in Persimmon Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Persimmon Plc made the list?

Simon Watkins owns shares in Taylor Wimpey.

The post How much do you need in a Stocks and Shares ISA to make £11,363 a year in second income from dividends? appeared first on The Twelfth Magpie.

You get upfront tax relief on your contributions, which instantly boosts their value, and means your wealth grows from a much higher base. You can also take 25% of your pot as tax-free cash from age 55 (rising to 57 from 2028). Thereafter, all withdrawals are taxable.

SIPP tax breaks combine nicely with a Stocks and Shares ISA. There’s no upfront tax relief with an ISA, but all returns are free of capital gains tax, income tax and dividend tax for life. Holding both a SIPP and ISA let you manage withdrawals to keep your overall tax bill to a minimum.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

How can I build tax-free wealth?

Let’s say an investor targets an eye-catching income of £3,333 a month in retirement, which works out as £39,996 a year. How much would they need in the SIPP? The answer depends on the yield on their underlying investments.

• 4% – £999,900
• 5% – £799,920
• 6% – £666,600

Those may look like daunting sums. However, we’re talking about a pretty big passive income here, similar to the average annual wage from a full-time job. Any state pension is on top. Even smaller retirement pots will still generate a generous second income stream.

At The Twelfth Magpie, we’re keen on stocks that offer both share price growth and dividend income. Today, around 25 stocks on the FTSE 100 yield 4% or more, with some yielding as much as 6%, 7% or even 8%.

House builder Persimmon (LSE: PSN) catches the eye for its generous 5.5% yield. A word of warning though. It isn’t for everyone.

The housebuilding sector has had a tough run, as rising interest and mortgage rates hit affordability and squeeze demand. Higher inflation has also pushed up the cost of building materials and labour, while post-Grenfell fire safety cladding scandal has cost them hundreds of millions in compensation.

Should you take a chance on Persimmon?

As a result the Persimmon share price has plunged 18% over the last 12 months, and a quite staggering 65% over five years.

Things looked set to improve at the start of the year as inflation eased off, but the Iran war changed that. Mortgage rates are rising again. UK planning rules make building costly and tricky too.

So why would I suggest anybody considers Persimmon today? As a result of its troubles it’s incredibly cheap, with a price-to-earnings ratio of just 10.8. So the shares could recover at speed when the economy picks up. Plus of course there’s the income. However, I should point out that the total dividend has been frozen at 60p per share for the last four years, and that may continue for a while longer. There’s even a chance of a cut unless the housing market revives.

Much depends on what happens in Iran, but for brave investors were willing to take up the challenge, I think Persimmon is worth considering both for dividend income and long-term growth. I’ll be watching this one closely. If it doesn’t grab you, there are plenty more passive income opportunities on the FTSE 100 today.

Should you invest £5,000 in Persimmon Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Persimmon Plc made the list?

Harvey Jones does not hold any positions in the companies mentioned.

The post How much is needed in a SIPP to target a £3,333 monthly passive income appeared first on The Twelfth Magpie.

Making knee-jerk decisions following new events can be expensive in the long term. It’s why I continue to hold Persimmon (LSE:PSN) shares in my portfolio. Want to know why?

Market slowdown

Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.
Warren Buffett

I was hoping 2026 would be a better year for housebuilder Persimmon. Receding inflation meant several crucial interest rate cuts were expected, stimulating housing market demand. It took less than two months for my hopes to fall apart.

Why? The market is already exhibiting a sharp slowdown due to the Middle East conflict. Halifax data shows annual house price growth halved in April from the previous month, to 0.4%. With concrete steps towards a US-Iran ceasefire remaining elusive, buying activity could remain subdued.

Keeping the faith

Yet I’m not walking away from Persimmon, even though the strong share price recovery I was expecting appears in tatters. Firstly, the homes market remains largely robust despite these fresh pressures, reflecting demand that continues to outstrip supply.

As Halifax notes,

while activity is likely to cool in the near term, the underlying picture remains one of relative stability, supported by wage growth that continues to outpace house price inflation.

Looking further out, the housebuilding sector still has explosive profits potential in my opinion. The UK needs at least 300,000 new homes a year to meet its rapidly growing population, according to industry forecasts. And Persimmon’s scale and focus on more affordable homes puts it in great shape to capitalise on this opportunity.

The FTSE 100 company is the country’s third-largest housebuilder by volume behind Barratt Redrow and Vistry. For 2026, it is planning to build between 12,000 and 12,500 new homes.

A dip buying opportunity?

Since 1 January, Persimmon’s share price has dived 17% in value to £11.32. Though the risks have risen, is it possible the market could have overreacted? I think it’s possible.

One reason is that the builder’s model could support strong sales even if the broader market slumps. As Hargreaves Lansdown notes,

since Persimmon’s houses are typically priced around 19% below the newbuild national average, sales tend to be more resilient in times of uncertainty

What’s more, Persimmon is one of the UK’s most vertically integrated housebuilders, manufacturing a significant share of the materials it uses like bricks, timber, and tiles. The result? It’s better protected from rising inflationary pressures, helping to protect margins.

In my view, recent share price weakness represents an attractive dip buying opportunity. Persimmon shares now trade on a price-to-book (P/B) ratio of 0.9, which is well below the 10-year average of 1.8. On balance, I think it’s one of the best FTSE 100 value shares to consider.

The post Things are getting tough for this FTSE 100 share. But I’m not selling! appeared first on The Twelfth Magpie.

If they want to be comfortable, they’ll need a lot more than that, as this table shows. 

The new State Pension, paid to those who retire from April 6, is worth at most £12,547. That’s below the bare minimum required. Which is why it’s essential to save under your own steam.

I think the Stocks and Shares ISA is one of the best ways of doing it.

How much income could I get from an ISA?

Right now, a popular choice for long-term ISA investors is to build a diversified spread of FTSE 100 shares offering both dividend income and growth. They can re-invest the dividends to turbo-charge their total return when working, then draw them as income in retirement. 

Now let’s say their portfolio generates an average yield of 5% a year. To hit that income target, they’d need £752,820, which is a lot of money. Let’s say somebody has 30 years before retirement. They’d need to tuck away £505 a month, assuming an average total return of 8% a year.

That takes dedication and commitment, but the rewards are huge.

So how can I get a high yield?

Today, an impressive 14 FTSE 100 stocks yield 5% or more, including housebuilder Persimmon (LSE: PSN). It’s forecast to yield 5.7% this year, rising towards 6.2% in 2027. That’s a terrific rate of income, but it isn’t all good news.

Recent years have been tough for housebuilders, as higher inflation, low affordability, the fire safety cladding scandal and end of the Help to Buy scheme squeeze sales and prices.

2026 looked promising with interest rates expected to fall, then came war in Iran. The oil spike’s now driving inflation back up, and mortgage rates could follow. The Persimmon share price is down 18% in the last year, and 66% over five. So why would anybody buy this stock today?

Buying beaten-down companies can be a winning strategy, as it allows investors to get in at a lower valuation and higher yield. However, patience is required. The UK economy’s struggling, and while the property market’s holding up, the UK’s troubles could last a while longer.

However, with a modest forward price-to-earnings ratio of 10.2, Persimmon investors are taking a position at a big discount. I think it’s worth considering for long-term investors up for the challenge. At some point, this stock could take off. Just don’t expect it to happen overnight.

The post How much do you need in an ISA for an annual income worth double the £12,547 State Pension?  appeared first on The Twelfth Magpie.

A Cash ISA is handy for short-term savings but the stock market is the way to build long-term wealth. Over the last decade, research body Investing Insiders found the average Cash ISA returned 4% a year. By contrast, the average Stocks and Shares ISA delivered 9.5%, with dividends reinvested.

How much do you need to make a million?

The difference magnifies over time, as my table shows. It assumes someone saves or invests £511 a month, which adds up to £6,132 a year.

It’s possible to contribute up to £20,000 to an ISA. Somebody who invested that and got an average return of 9.5% a year would hit millionaire status in less than 19 years. Right now, a popular choice for long-term ISA investors is to build a diversified spread of FTSE 100 shares offering both dividend income and growth. 

Many investors overlook the power of dividends. However, if you reinvest your them straight back into your portfolio, they turbocharge the overall return through the long-term compounding effect. Recent stock market volatility has driven up dividends yields. A notable example is house builder Persimmon (LSE: PSN).

The construction sector has been hit hard by the Iran conflict, as the rising oil price threatens to drive up inflation and interest rates. Lenders have been hiking mortgages, which could hit demand for new builds.

Should I take advantage of current market volatility?

Affordability is already stretched, especially for first-time buyers. Also, builders have also seen their costs rise, due to the cost-of-living crisis and increased employment taxes, further squeezing margins. Now things could get even tighter. The Persimmon share price is down 22% over the last year, and 67% over five years. That level of volatility will deter some investors, but it has two huge advantages for those considering the stock today.

First, the shares now look much better value, with a forward price-to-earnings ratio of just 10.2. That’s below Persimmon’s long-term average of 11.6. Second, the falling share price has driven up the yield. Persimmon is forecast to pay dividend income of 5.95% this year, rising to a stunning 6.46% next year.

Dividends aren’t guaranteed, and can be cut if Persimmon doesn’t generate enough cash to make them. That will get harder if the Middle East conflict intensifies. However, I think Persimmon is well worth considering with a long-term view, as part of a wider portfolio of FTSE 100 dividend and growth stocks. The housebuilder looks like an exciting opportunity, but I’ll be closely watching its dividend and growth prospects in the coming months.

The post How to target a £1m Stocks and Shares ISA by investing £511 a month appeared first on The Twelfth Magpie.

Let’s see.

Two alternative approaches

With a yield of 6.4%, a portfolio of dividend shares would need to be valued at £196,063 to pay £12,548 a year.

And while some investors like to focus on growth shares when building an investment portfolio, I believe it’s possible to establish an impressive nest egg using dividend shares.

However, the key is to reinvest those dividends. By doing this, gains will compound quickly.

How do the numbers stack up?

For example, let’s assume someone started with £10,000 of income stocks paying 6.4% a year. In year one, they would generate £640 of dividends. Assuming this amount was reinvested, £681 would be paid in year two. During the third year, the income produced would be £725. And so on. You get the picture.

After 25 years, the initial lump sum of £10,000 would grow to £47,516. That’s an amazing return from doing, literally, nothing.

However, it remains a long way short of our target of £196,063.

But if someone was able to supplement the up-front £10,000 with a monthly investment of £213.73, they would be able to build a portfolio worth £196,058.

At this point, they could change tactics and spend the dividends rather than reinvest them. A 6.4% yield on this sum would produce £12,548 a year. I think this would be a nice addition to the State Pension.

Building for the future

One of the FTSE 100’s ‘Lucky 13’ is Persimmon (LSE:PSN), the UK housebuilder. At the moment, it’s yielding 5.6%.

However, as a reminder that dividends don’t come with any guarantees, it had to cut its payout for its 2023 financial year by 66%. The following year it was reduced by 20%.

The fact that the stock’s still yielding over 5% is an illustration of how much its share price has fallen in recent years.

And if the conflict in the Middle East continues, there could be more bad news for shareholders to come. If inflation starts to pick up again it will increase construction costs, interest rates will rise, mortgages will become more expensive, and disposable incomes will be squeezed. Against this backdrop, Persimmon will see both its top and bottom lines affected.  

But I remain hopeful. It’s in everyone’s interest for the war to stop. And even the Bank of England, not known for its overly optimistic forecasts, believes the current ‘energy crisis’ is unlikely to see a return to post-pandemic levels of inflation.

Looking further ahead, the fundamentals of the UK housing market are likely to help Persimmon. Analysis by the Centre for Policy Studies reveals that there’s a shortage of 6.5m homes when compared to similar European countries. To close the gap, it’s estimated that 565,000 homes a year will be needed by 2040. Planning reforms will help.

This should help Persimmon build enough houses to enable it to raise its dividend once more. On this basis, I think it’s an excellent income stock to consider.

The post Starting with £10,000, how could someone aim to earn an annual second income of £12,548 from UK shares? appeared first on The Twelfth Magpie.

Over the last year, the Persimmon share price plunged 24%. Over five years, it’s down a brutal 65%. If an investor had put £7,775 in Persimmon shares on 1 May 2021, they’d have picked up 248 shares at 3,132p each. Today, those shares are worth just 1,057p each, a meagre £2,621 in total. Our investor would be sitting on a paper loss of £5,154. However, new investors could potentially turn that nightmare to their advantage.

In practice, they wouldn’t have lost that much, as they’d have received dividends along the way. The board cut the dividend per share from 234p to 60p in 2022, and it’s been frozen at that level ever since. But our investor would have got about £1,100 worth of dividends, at a rough guess. If they’d reinvested them, they’d have picked up more stock at the lower price.

Is this FTSE 100 stock too exciting to ignore?

Persimmon isn’t the only housebuilder suffering today. They’re all struggling. Shares in the UK’s biggest builder of all, Barratt Redrow, are down 47% over one year, and 67% over five.

When the market cycle turns against a sector, there isn’t much companies can do about it. But there’s one thing investors can do, if they’re up for the challenge. And that’s take a position towards the bottom of the cycle, when the shares are cheap and the yield higher, then grit their teeth and wait for events to turn back in their favour. Do we have such an opportunity today with Persimmon? I think we might have.

Yesterday’s (30 April) trading update was way better than I’d have imagined. Average weekly net private sales rate rose 3% over the first four months of the year, while the order book climbed 5% to £2.5bn. Private average selling prices edged up 5% to £306,900. The board also confirmed full-year guidance, with underlying pre-tax profits up 4% to £462m.

It’s cheap, and just look at that yield

Now let’s assume the board holds the dividend at 60p in 2026 too. If it does, that’s a forward yield of 5.7%. Which is hugely tempting but of course there are risks. Yesterday, the Bank of England warned inflation could go as high as 6% if the Iran conflict drags on, while analysts are pricing in anything between three and six interest rates hikes. That could hit housebuyer demand, prices and revenues. Investors who buy today could be in for an anxious wait before Persimmon recovers. Yet the risks look priced in. Persimmon’s forward price-to-book ratio is now just 0.86. That’s well below its 10-year average of 1.83. 

When beaten-down shares recover, they often do it quickly. So it can pay to get in early. It certainly takes a brave investor to buy Persimmon today, but I still think it’s worth considering with a long-term view.

The post £7,775 invested in Persimmon shares 5 years ago is now worth… appeared first on The Twelfth Magpie.

Its balance sheet strength and surging earnings prospects support the sustainability of its payouts. And with the share price still depressed after the housing sector slump, the discount adds an extra layer of appeal.

So, how much could investors make from the shares?

How much in dividend income?

Persimmon’s current dividend yield is 5.4% — way higher than the FTSE 100’s present 3.1% average.

But dividends can change alongside share price movements and changes in annual payouts. In this case, analysts forecast its dividend yields will rise to 5.9% this year, 6.5% next year, and 7% in 2028.

So, a £20,000 holding in the stock could make £20,193 in dividends after 10 years and £142,330 after 30 years. This is based firstly on the forecast 6.5% dividend yield as an average. And secondly on the dividends being reinvested back into the stock to harness the turbocharging effect of ‘dividend compounding’.

The total value of the holding after 30 years could be £162,330, paying annual dividend income of £11,363 one day!

But what about the potential for share price gains too?

Profiting from the undervaluation?

One of the most widely used valuation tools is discounted cash flow (DCF). This estimates fair value by projecting future cash flows and discounting them back to the present. Greater uncertainty in those forecasts leads investors to demand higher returns, increasing the discount applied.

Analysts’ DCF models differ because they rely on different inputs. Using my own assumptions — including an 8.8% discount rate — Persimmon looks 58% undervalued at £11.11.

That suggests a fair value of £26.45, more than double where the shares trade today.

Because share prices tend to gravitate to their fair value over the long run, this could be an outstanding opportunity if those DCF assumptions hold good.

How does earnings growth look?

A risk for Persimmon is a further surge in the cost of living that prevents people from moving home. Another is any sustained rise in interest rates that would increase the cost of mortgages.

However, analysts forecast that Persimmon’s earnings will surge an average of 12.7% a year over the medium term, at minimum. And growth here supports gains in any firm’s share price and dividends over the long term.

These projections look well supported by its 2025 results, released on 10 March this year. Underlying operating profit soared 17% year on year to £472m. Meanwhile, revenue rose 17% to £3.75bn, highlighting its ability to grow volumes and pricing even in a still‑fragile housing market.

My investment view

I already own shares in Taylor Wimpey, so adding another housebuilder would unsettle the risk/reward balance of my portfolio.

But for investors without such a problem, I think Persimmon is a very intriguing prospect to research further. Its dividends are projected to rise strongly, as is its share price.

For me, other high-yield undervalued stocks in other sectors have recently caught my eye.

The post Here’s how £20,000 in this overlooked FTSE gem could make investors £9,089 in annual dividend income over time appeared first on The Twelfth Magpie.

Assembling a balanced portfolio of FTSE 100 companies inside a Stocks and Shares ISA can really pay off over time. Top UK blue-chips don’t just offer potential share price growth, but dividend income too. Here’s how. Let’s say an investor puts away £7.77 a day, which works out at £2,835 a year. Then increases their contributions by 5% a year thereafter.

See how fast your money could grow

Next, let’s assume the portfolio delivers an average compound return of 8% a year over 30 years. After three decades, their pot could have grown to around £585,897. That shows how the stock market can really put your money to work.

If the investor draws 5% of that portfolio as annual retirement income, they’d get a pretty fabulous £29,295 a year, while leaving most of their capital to grow. All of that starting from just £7.77 a day.

Of course, there are no guarantees. The portfolio could return less than 8% a year, or it could return more. And inflation would make it worth less too. But my point stands. It shows how steady, consistent investing over decades can translate into a significant income later in life.

The next question is where to invest. The FTSE 100 has been volatile recently, due to Iran tensions. That’s also created opportunities, notably in the housebuilding sector, amid concerns that higher oil prices will drive up interest rates and mortgage costs, and hit housing demand, sales and prices. They may also drive up the cost of materials and threaten fragile supply chains.

Persimmon shares boast a bumper 5%+ yield

Persimmon (LSE: PSN) has taken a beating as a result. Its share price is down around 13% over the last year and roughly 65% over five. That’s not an outlier, other housebuilders are suffering too.

The Persimmon share price has begun to stabilise in recent weeks. It now trades on a modest forward price-to-earnings ratio of 10.9, while the trailing dividend yield looks tempting at 5.4%. Recent dividend history has been bumpy though. The board slashed payouts by 75% in 2022, and it’s been frozen at 60p per share since. However, forecasts suggest the forward yield will climb to 5.65% this year, then 6.2% in 2027. No guarantees of course. Dividends could be cut if conditions deteriorate.

Should I buy go shopping for shares today?

I think Persimmon is still worth considering, but only with a long-term view. You should always balance any stock pick with a spread of shares across different sectors, offering both dividend income and growth. Never rely on a single industry or theme.

I can see plenty more brilliant bargains across the FTSE 100 today. Periods of uncertainty like today can create more attractive entry points for patient investors. And a higher potential passive income over time.

The post How to aim for a brilliant £29,295 yearly passive income starting with just £7.77 a day in an ISA appeared first on The Twelfth Magpie.

With this in mind, I think it’s possible to build a pension pot worth a cool £175,000 using a handful of dividend shares. Let me explain.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Crunching the numbers

At an annual growth rate of 5%, someone investing £300 a month for 25 years could build a retirement pot worth £176,436. Obviously, investing more for longer is likely to yield a better return.

However, if someone was able to supplement their monthly investment with an initial lump sum of £20,000, the end result would be even more impressive. In this scenario, it would be possible to build a SIPP valued at £244,163 after 25 years. Again, this assumes a 5% return each year.

Whether an individual achieves a 5% return from growth shares — or reinvests the dividends from income stocks paying 5% — the end result will be the same.

And there are plenty of dividend-paying shares offering a similar return at the moment (19 April). The table below includes five from the FTSE 100, the UK’s premier index of listed companies.

I would have to do more research before deciding whether all of them are worth considering but, remember, this list of high-yielding shares isn’t exhaustive. There are plenty of others available at the moment.

The biggest and best?

In theory, FTSE 100 stocks are the most likely to deliver reliable earnings growth. In turn, this means their dividends are probably going to be more sustainable and predictable. Of course, there are never any guarantees when it comes to investing in the stock market. However, history suggests that the UK’s largest companies are among the world’s most reliable when it comes to dividends.

One stock in the table — and a company that has a long history of returning a large proportion of its earnings to shareholders — is Persimmon, the FTSE 100 housebuilder.

As a result of the pandemic and partly due to the impact that post-Covid construction cost inflation had on its margin, it had to cut its dividend. But based on amounts paid over the past 12 months, new investors could enjoy a yield of 5.2%.

Green shoots

Although the UK housing market has been in the doldrums lately, there are signs things are slowly recovering. The latest analysis from the Bank of England shows a steady improvement in mortgage approvals.

And until Iran was attacked, most economists were expecting the next movement in interest rates to be a downwards one. Assuming the current ceasefire in the Middle East holds, the market should continue its recovery, albeit after– perhaps — a temporary setback.

Presently, there’s a shortage of housing in the UK and recent changes to planning law should make it easier to address this under-supply. And with its houses being cheaper than most of its peers, Persimmon could be one of the biggest winners.

This should help the group expand once more and enable it to raise its dividend again. Its debt-free balance sheet also means it can use more of its operating cash to reward shareholders.

Personally, I think Persimmon’s worth considering as part of a diversified portfolio. In fact, I hold it in my own.

The post £300 a month and 5 high-yielding dividend shares could build a SIPP worth over £175,000! appeared first on The Twelfth Magpie.