8.4% dividend yield! Here is a FTSE 100 action to be considered in March of passive income

Are you looking for the best passive income shares to buy next month? Here is one to consider that I think it could be an excellent source of long -term dividends.

By 2025, its dividend yield is more than double Ftse 100 Average forward of 3.5%.

8.4% dividend yield

A slow economy continues to throw a cloud on the real estate market. There is also a continuous uncertainty about future interest rates in the midst of a recent collection in inflation.

However, the activity of the housing buyer remains resistant, which suggests Taylor Wimpey (LSE: Tw.) It could be a strong choice for dividend investors to consider it.

City analysts expect the dividend of the whole year to increase by 1% in 2025, at 9.56p per action. After the recent weakness of the price of shares, this means that the dividend yield in the actions of Taylor Wimpey is a huge 8.4%.

Dividend risk

There is some risk for current dividend forecasts, having said that.

The expected payment for this year is higher than the predicted profits of 9.13P, letting the builder trust his balance and expect that the recovery of the real estate market does not strive.

On the positive side, Taylor Wimpey has a ton of cash in his books to help him meet dividend projections. The net cash was £ 564.8th December.

In addition, the latest real estate market data is still very encouraging.

According to Nationwide, the average prices of properties of the United Kingdom increased 0.4% month by month in January, to £ 270,493. This was above 0.1% growth in December.

Annually, prices increased 3.9% last month.

Strong update

Taylor Wimpey's latest commercial data are also quite reassuring. Footsie's firm said Thursday (February 27) that the net rate of private sales between January 1 and February 23 was 0.75 for sales departure per week, 12% more year after year.

Meanwhile, its total order book (excluding joint companies) increased to £ 2.3 billion, which included some 8,021 houses. This is compared to £ 1.9bn and 7,402 respectively at the same point in 2024.

A robust level of orders means that Taylor Wimpey hopes to register between 10,400 and 10,800 terminations, excluding joint companies, in 2025. That is greater than 9,972 last year.

According to the analyst Andy Murphy of Edison: “The company's solid balance, the increase in land approvals and simplified planning capacity position volume growth in 2025, even when the pressure costs and the construction of the mortgage continue to be key factors to monitor. “

A long -term purchase?

Even despite short -term risks, I think Taylor Wimpey is an attractive passive income action to consider. And it is not just because of that dividend yield of 8%more.

I hope the business will work hard on a longer time horizon as population growth drives the demand for housing. The government plans to build 1.5 million new houses between 2024 and 2029, provided by a stake of planning regulations for housing builders, will give the margin of additional housing to increase the growth of profits.

The Deep Land Bank of Taylor Wimpey puts in a solid position to exploit this opportunity as well. It had approximately 136,000 plots at the end of 2024, after the company added more than 12,000 in the course of last year.

While it is not exempt from risks, I think Taylor Wimpey is a great action to consider for long -term dividend income.