Greencoat UK Wind: New research
19/04/2018
Aims to provide investors with an annual dividend that increases in line with RPI inflation while preserving the real value of the NAV
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Highlights:
· UKW invests in operating wind farms that deliver strong cashflows from government support regimes and the sale of electricity
· From these cashflows, the managers aim to pay dividends that rise with inflation, with enough left over to reinvest in assets with a view to maintain the NAV in real terms
· The company has achieved critical mass, having recently purchased its 30th wind farm, bringing total assets to £1.6bn and the board have guided that the OCF will fall this year to 1.15% (from last year's 1.24% and 1.46% at listing)
· To date, the company has delivered on all its promises, and in contrast to peers, the managers have reaffirmed their confidence in being able to pay a dividend that matches inflation. At the current share price, UKW's prospective yield is 5.6%
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Greencoat UK Wind a client of Kepler Trust Intelligence. This material should be considered a marketing communication, and is not independent research.
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