Persimmon (PSN.L)
Persimmon is one of the UK's largest housebuilders, constructing thousands of new homes across the country every year.
Is Persimmon a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Strong position in the UK housing market. Worth weighing: Highly sensitive to changes in interest rates. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Persimmon actually fallen?
Over the last 2 years of daily prices, Persimmon fell as much as −42% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.
Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Long-term structural housing shortage drives consistent demand.
Significant regulatory changes or a long-term decline in housing demand.
What does Persimmon do?
Persimmon makes its money by buying land, securing planning permission, and building residential homes for sale to the public. Because they operate in the housing market, their success is closely tied to how easy it is for people to get mortgages and how confident they feel about the economy. Much rides on how interest rates shape demand for new homes and on the company's ability to keep building profitably.
On our factor screen it looks strongest on growth and value, and weakest on momentum.
- ✓Pays a dividend - about 5.4% a year
- ✓Growing - revenue up about 19% over the year
- ✓Low debt - a sturdier balance sheet
- Value screens high (72/100)
- Growth screens high (74/100)
- Strong position in the UK housing market
- Consistent history of paying dividends to shareholders
- Assets are valued at a discount to their book value
- Momentum screens low (23/100)
- Economic downturns can lead to a sharp drop in home sales
- Rising costs for building materials and labour can squeeze profit margins
- Changes in government housing policy could impact future projects
What do Persimmon's numbers mean?
Does Persimmon pay a dividend?
Yes - Persimmon currently pays a dividend of about 5.4% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
What do the numbers say about Persimmon's dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
When does Persimmon report earnings, and how did recent quarters go?
Persimmon is next scheduled to report on about 2026-08-06 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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Casey's General Stores, Inc.What are the scenarios for Persimmon?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Persimmon?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Strong position in the UK housing market
- Consistent history of paying dividends to shareholders
- Assets are valued at a discount to their book value: A company's net assets - what it owns minus what it owes - per share. Price-to-book compares the share price to this figure.
- Highly sensitive to changes in interest rates
- Business model relies on securing land and planning permission
- Recent share price performance has been negative
- Economic downturns can lead to a sharp drop in home sales
- Rising costs for building materials and labour can squeeze profit margins
- Changes in government housing policy could impact future projects
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained, significant drop in UK interest rates
- Major government intervention to boost new home construction
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.