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To invest mostly in operating UK wind farms with the aim to provide investors with an annual dividend that increases in line with RPI inflation while preserving the capital value of its investment portfolio.
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Also if EPS are 0.14 going forward, this gives a PE of 10.55 and a pay out ratio of 71%, which is quite high.
Any 100 mil buyback is 3% on the SP. Taking us from 131 to 135, but we are very oversold currently.
I think someone said they can't get more funding for new projects as their SP is under NAV.
Makes sense I guess to buy back, push SP higher to NAV and you get the 7% (7mil PA) return now.
Making the same mistake as the house builders in buying back shares rather than investing in their core business.
I make it a 7.6% yield at the current share price.
All excellent stuff from UKW.
Dividend, dividend increase, massive discount to NAV, share buyback.
Can this shake off the decline ? If not what on earth will it take ?
Increase in Annual Dividend
As a consequence of the Company's prospects, strong balance sheet and cash flow generation, the Board has determined it will increase its annual dividend target to 10 pence share for the 2024 financial year, an increase of 14.2% over the 2023 target dividend of 8.76p. This increase is significantly higher than forecast December 2023 RPI inflation.
Commencement of Share Buyback Programme
The Programme will commence shortly, and subject to market conditions, end by no later than 25 October 2024. The Programme will be executed under the authority granted by shareholders at the Greencoat annual general meeting on 23 April 2023 to acquire up to 347,506,861 shares, equating to c.14.99% of the issued share capital at the time.
Discount to NAV
Net Asset Value / Net Asset Value per share
£3,845.0 million / 165.8 pence
Oh dear, not at capitulation yet, and we are very low on the RSI. I'm looking at IBTl and taking some risk off the table!
Some huge sells today:
13-Oct-23 16:40:54 132.10 29,162 Sell* 132.60 132.80 38.52k O
13-Oct-23 16:36:23 132.10 11,365 Sell* 132.60 132.80 15.01k A
13-Oct-23 16:36:23 132.10 38,635 Sell* 132.60 132.80 51.04k A
13-Oct-23 16:36:10 132.10 27,545 Sell* 132.60 132.80 36.39k
It was 142 a week ago, why sell it now at 132?
Did someone just make fusion viable or is this FUD?
PE of 6, 6% yield, yes please.
@schwee
It's not just about the yield margin. It's also about the fact that UKW dividends should rise with inflation, but bond coupons won't.
The divi yield has to carry a healthy margin over gilts to account for the added risk of UKW. So perhaps not cheap at all in the current bond markets turmoil.
Unlike the Renewable Energy Funds, HICL has hardly increased its dividend over the past few years, and GCP has no plans to increase its dividend at all. Anyone who buys UKW at the current price is not going to regret it.
I added a few more yesterday. Partly because my EPIC holdings are being taken over so I will have to find a new home anyway. Relative to epic, these have dropped so I sold some epic early to add here, Trig and NG.
I've diversified into some FSFL, but I keep coming back to UKW as the best of the bunch. Also, though I have them on my watch list, I've so far avoided companies like HICL and SEIT, because I think they're vulnerable to prolonged inflation, as they have long contracts that are only partially linked to inflation. Also, note that GCP invests in the debt of infrastructure companies, not directly in infrastructure. Still, the dividend yield of some of these companies is getting so high that it's difficult to resist the temptation!
Likewise. The whole sector is screaming with bargains: UKW HICL HEIT GCP ORIT..
I caved, and settled for 131.38p. 😉
Yes, it seems very cheap, though it can always go cheaper in a crash! I already have a lot of UKW, so I've been holding out for 130p before buying any more. Getting close now, and I'm very tempted to go for it.
I've been holding UKW for a couple of years now, I didn't think we would see a return to 131 levels.
UKW/GBCPI shows in real terms where the support is, and that this is a great price to top up at. 2020 and 2016 were the last opportunities at this real price. So, as we are looking at increasing energy prices on the horizon again, I have snapped up some more.
https://www.tradingview.com/chart/UKW/3ofDSMWN-UKW-The-cheapest-it-has-ever-been-inflation-adjusted/
Https://amp.theguardian.com/environment/2023/sep/03/sunak-poised-revoke-ban-onshore-windfarms-report
Usually I seem to be saying it is below the long term average but (perhaps not surprisingly) July was up 17% . Price looked to be close to their anticipated value so it should have been a good month for revenues.
I can't quibble about my (almost) £500 dividend yesterday.
My only complaint is I haven't got these shares tucked away in an ISA, which means I'll have to ignore rhe tax man again....
Good mention/ plug in the ST yesterday
@Monkshood. I'd prefer them not to do any more placements, so maybe it's best if the price stays down (as I'm not planning to sell). Some other renewables companies are starting to do share buybacks at these low prices. If they want pay down debts, they can use the surplus profits.
Here's a link to the Kepler article:
https://www.trustintelligence.co.uk/investor/articles/fund-research-investor-greencoat-uk-wind-retail-aug-2023
I see the UKW price is down to 134 now. That's almost back to the price of 133 that I first paid 2 years ago! I'm so tempted to buy more, but I'll wait for an even lower price as I'm already very heavily into renewables. I bought some Foresight Solar the other day at an 8% yield, for the sake of diversifying a bit.
It's nice to see a £100k Director buy go through.
You can pay me to write a bullish report on a company too!