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(Alliance News) - Greencoat UK Wind PLC on Thursday said it has lifted its annual dividend target and will shortly begin a share buyback programme.
The company, which invests in UK wind farms, upped its 2024 dividend target to 10 pence per share. It is a 14% increase from the 2023 target of 8.76p.
It will pay the 10p already for 2023 dividend, ahead of the 8.76p target. To do so, Greencoat UK Wind said it will pay a 3.43p per share fourth-quarter dividend, up from the 2.19p for each of the first three quarters.
Greencoat UK Wind also plans a share buyback reflecting the company's prospects, "strong balance sheet" and cash flow and the discount to net asset value at which its shares trade.
The company will buyback up to GBP100 million worth of shares.
"The board has determined that the commencement of a share buyback programme will also provide greater flexibility to achieve an optimal use of cash to deliver value for shareholders and represents a highly attractive investment opportunity for the company," Greencoat UK Wind explained.
The buyback will begin shortly and end no later than October 25 next year.
Greencoat UK Wind shares rose 2.2% to 133.10 pence each in London on Thursday morning. It has a market capitalisation of GBP3.09 billion.
By Eric Cunha, Alliance News news editor
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