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Shocking wage (record raises)and inflation data.( record service sector inflation, unchanged core), plus the spectre of a Labour Government in 2024 killing the price now, sub 2017 ( Covid crash aside). And heck you may well be able to get 6.5% risk free on a bond soon. Boe will have to keep raising, forget the hype on yesterday's CPI drop, the figures were beyond dreadful. I guess BBC journos with their big mortgages were clutchimgvst straws touting 6.8 as a success. Look at Core and Wage inflation.
I prefer Jlen only because it has a broader base of assets albeit smaller and seem to be conscious of not overpaying for assets. While interest rates rise share prices could well drop to compensate but my biggest concern is that government finds a way to tax to the max. I don't pretend to understand how the electricity pricing works though gather it's based on the gas price and govt are looking at decoupling, which could knock the profits and therefore dividends. Of course the knock on effect would also be fewer new renewables projects as firms won't then invest.
Added at 118p steady & growing income and potential for capital growth
There is no obvious as that's already in the price, it always is.
There is a trend though where safe dividend yielding REITs or Investment trusts and the like have been sold down.
There is no alternative (TINA) has gone as we now have risk free (but taxable) cash deposit accounts.
TRIG has growth albeit slow on its side, slow and steady win the race.
Now that rates have been hiked again by 0.5% as expected. The Share price has fallen as expected. I marked another buy under 110p.
Unfortunately there was a faff crediting my account but eventually added another tranche at a smige over 110.
I'm not sure where the bottom will be or how long it will take to turnaround but thought it was worth a go.
I'm off to hide from the tinternet just in case it keeps falling. A quid anybody?
I wouldn't there is no business risk. Power prices are falling, solar isn't as efficient in hot weather and wind is down. Borrowing costs are rising.
So the risks are probably bigger, again knocking the SP but it should get to a better risk v reward at some point. Any inflation adjusted earning could help and there will be pressure for dividends to rise over time. So some good some bad.
Thanks both. I am still fairly new to this and hadn’t considered the broader implications. In that case it would seem like a good time to buy more and hold until the situation recovers as there is no business risk.
Interest rates going up and likely to rise again Thursday and these are bond like. Additionally the extra windfall tax on generators.
So a less rosy outlook looking forward and a share price reaction.
Bond yields going higher. If they fall back this may rise. Seems to be an inverse correlation. This stock and others like it less attractive when investors can get an equivalent yield at zero risk.
Down like a submarine at the moment - anyone any ideas why? I'm sure I'm missing the bleedin obvious here so if anyone can point out what I'm missing I'll be much obliged.
TIA
Bought some of these today. Good divvies. Fingers crossed.
17-Mar-23 16:35:26 125.80 1,181,735 Buy* 125.80 126.00 1m
A big buy order at 125p!
Glad I topped up at 121 and 120p!
LTH GLA!
Fear index is off the charts.
Be greedy when other's are fearful!
Now an unbelievable 37p difference in share price between TRIG and UKW. Something within the company needs to change here with the share price down like this.
I couldn't wait for the 118s so bought some more this morning as Im going out later. In hindsight I should have probably used a limit order. This I have done for a potential LGEN addition. Ill check tonight how that goes
Proabably not gerry, i dont remember it anyway
No problems Lurka. It was only out of interest. Generally I find tips in papers often come too late but in this case our timing was more in sync. I wonder if they tipped it last Oct when the SP was 118p
Sorry gerry i didnt have a link ut amirkat has done the job and thats the article i was referring to
It's time not timing. This should offer over 70p in the next 10 years. Hopefully growing with each year.
If interest rate sensitivity is responsible for the recent drop then I guess we have to hope that the move up in bond yields over the past few weeks starts to plateau. I mistimed my purchase at 130p but there’s far worse mistakes to make with regards to investments.
Thanks Amirkat. It ties with my conformation bias obviously after adding more. It's funny they are now on discount, it been a while on a small premium. Actually the yield is slightly higher than UKW which is also a bit unusual.
I wonder if the drop will continue towards the 118s. I'm hoping so but was hedging my bets now just in case it doesn't fall that far.
We are also approaching new tax season so I wonder if we will see an upward blip as isas get topped up before and after that date
Times tempus column 2nd March; The end of easy money flooding financial markets has forced investors to take a more scrupulous look at the rush of green energy and infrastructure funds that have established themselves over the past decade. Scale and diversity are two major hallmarks of quality. Trig possesses both. The fund which has amassed, net of debt, wind, solar and battery storage assets across Europe worth almost £4 billion, counts as one of the 20 largest groups within the FTSE at its current valuation- even after a slippage in the share price that has accompanied the rise in interest rates, a fall that has left the shares trading at a 7 per cent discount to the value of its assets. Having a tie to inflation within the income stream provides some protection against the increase in interest rates. The upshot? The NAV pushed on 13 per cent to 135p a share. More than half of its cash flows are derived from government subsidies, which rise in line with either retail or consumer price inflation. The rest is sold into the merchant power market, which has enjoyed a bigger surge in prices. The skew might have detracted from income last year, but it also provides greater visibility of what the fund stands to bank as energy prices ease over the course of 2023. The windfall tax on renewable generators is also now accounted for in the NAV, which removes an other strand of uncertainty. Bar 2021, the fund has paid out a rising dividend every year since it listed 10 years ago. This year it expects to continue that record, targeting a dividend of 7.18p a share, which leaves the shares offering a potential yield of 5.8 per cent at the current price. Dividends have been well covered too, with cash flows equating to 1.55 times the amount returned to shareholders, even after debt repayments. The boom in energy prices means there is more excess cash to pay down project-led debt which stands at around £2.3 billion and is mostly at a fixed rate until maturity.
Trig is one of a diminished number of infrastructure trusts that should still stand up to scrutiny.
Advice ; Buy
Why ; The shares offer a solid dividend and trade at a decent discount to NAV
Do you have a link or an edited short version as I don't subscribe. Ta
Quite a good write up in the times saying div risen every year except 21 and a buy
I'm not sure what going on either. I assume the leavy is paying it part and the drop in gas prices being added to increases in interest rates. I speed read the results this morning and decided to add a few more on this dip.
They do tend to be a bit bond like so maybe when things take a turn these will show a bit of an uptick. Hopefully more income come June onwards but my overall average is moving up.
Much prefer buying on 6%+ yields but I have some dividends that need a home and Mr Market has been a bit too smiley recently.