Taylor Wimpey (LSE:TW) is a FTSE 100 stock with a juicy dividend yield that could make me a nice passive income. Should I add the shares to my portfolio? Let’s take a look.

FTSE 100 house builder

Taylor Wimpey is one of the UK’s largest house builders and has operations in Spain too. It operates through 23 regional businesses and has a nationwide presence. The company builds a range of houses from affordable housing to more luxury developments.

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As I write, the Taylor Wimpey share price is 168p. At this time last year, shares were trading for 156p, which is a 7% return across a 12-month period. The FTSE 100 dividend yield average is 3%. Taylor Wimpey’s current dividend yield is close to THREE times that at 8.9%, which is enticing. Dividends are by no means guaranteed, however. They are intrinsically linked with the performance of a company and can be cancelled at any time, affecting any passive income I hope to make.

For and against investing

FOR: The current demand for new homes is huge and the government has committed to doing everything it can to boost the numbers. Low interest rates coupled with schemes to help people get on the property ladder add to the notion of a booming housing market. All this will help Taylor Wimpey in its demand for its products, and in turn performance. This performance could then lead to handsome investor returns in the form of dividends, making investors a passive income.

AGAINST: Macroeconomic pressures and the ongoing pandemic worries could dent any progress and investor returns. Rising costs could eat away at margin, linked to rising …….

Source: https://www.fool.co.uk/2021/12/13/heres-a-ftse-100-stock-that-can-make-a-nice-passive-income/