Housebuilder Stocks Rise 45% Year to Date

Shares in Berkeley Group are up modestly as the firm confirms an interim dividend. But how long can housebuilder shares keep climbin?

Emma Wall 17 August, 2017 | 12:04AM
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Berkeley Group Holdings (BKG) is up modestly following the firm’s announcement of an interim dividend of 51.76p per share to be paid on 15 September 2017. Brokers are forecasting a 5.41% yield through to 2019. The stock currently yields 4.94%.

Not that long ago, sentiment towards the UK housebuilders was dire. Following the Brexit vote investor concerns spiked – negatively impacting commercial property funds and housebuilder stocks.

Berkeley Group was among the worst performing stocks of 2016, losing 21% in value, while Barratt Developments (BDEV) suffered similar losses. Investors believed a slower economy – caused by Brexit – would likely result in a slower growth housing market, and that property prices would fall.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Barratt Developments PLC719.40 GBP0.00
Bellway PLC3,198.00 GBP0.00
Berkeley Group Holdings (The) PLC4,537.00 GBP0.00
Persimmon PLC2,771.00 GBP0.00
Premier Miton UK Value Opps B Instl Acc269.01 GBP-0.70Rating
Redrow PLC676.60 GBP0.00
Taylor Wimpey PLC164.00 GBP0.00

About Author

Emma Wall  is former Senior International Editor for Morningstar