Buying 12,487 shares of this high yield FTSE stock gives me an income of £100 every month.

The first thing I look for when choosing a FTSE 100 dividend stock is the income that will probably pay me. Next, I look at its growth potential. If both look good, I'm in.

Last year, I looked for a real estate developer Taylor Wimpey (LSE: TW), and decided it was likely to score on both sides.

Like all major housebuilders, it has been hit hard by the pandemic, with construction sites hit by mothballs and supply problems hurting reopenings.

The inflationary shock then raised interest and mortgage rates, hitting consumer demand, while pushing up labor and materials costs. This has squeezed margins from both sides.

Taylor Wimpey is one of my favorite assignments

But when I looked, Taylor Wimpey's balance sheet looked pretty sound. It ended last year with an estimated debt of just £126.8m, for example.

While it stopped dividends at the beginning of this pandemic, along with many others, payments resumed immediately. So I uploaded it to Taylor Wimpey and I'm glad I did.

Over the past 12 months, Taylor Wimpey's share price has increased by 45.39%. Throw in a trailing yield of 6.13%, and the total return is over 50%.

So is it a good buy today? It's certainly not cheap. I bought when the shares were trading at about seven times earnings. Today, the price-to-earnings ratio is 15.65. A price-to-earnings ratio of 1.6 suggests that investors should pay £1.60 for every £1 of sales made by Taylor Wimpey.

It still offers an impressive weather yield of 6.04%, rising to 6.21% by 2025. That is well above the FTSE 100 average of 3.54%.

This FTSE 100 company is one of my favorites

Taylor Wimpey predicts it will pay a dividend of 9.61p per share in 2025. Let's say I wanted to generate £100 of monthly income, or £1,200 a year. To achieve that, I will have to buy a total of 12,487 shares. With the shares trading at around 157p, that would cost me £19,605, which is my entire Shares and Shares ISA.

That would also not balance my portfolio, as I would have too much exposure to one stock and sector. However, by building up my stake and investing a lot of money over the next few years, I was able to get there.

I can evaluate the opportunity to buy today, because Taylor Wimpey shares have fallen by 5% in the last week. Although they are a little expensive, I am optimistic about their prospects.

Once this week's Budget is out of the way, we'll have a good look at where the economy is going. If the Bank of England starts to cut interest rates, that could boost the housing market. It will also make high-yield stocks like this one look more attractive, as savings rates and bond yields fall.

As with any stock, there are risks. Investors may be banking on Labour's construction boost, but in my view, it will be difficult to achieve their target of 1.5m homes in five years.

Another risk is that interest rates could remain higher than expected, putting pressure on consumers. Dividends are not guaranteed so I may not get the money I expect.

However I plan to stay invested for years and hope to one day reach my £100 income target as Taylor Wimpey shares rise. Time to buy more.