LSE:UKW (Greencoat UK Wind)
About UKW
Greencoat UK Wind Plc is a renewable infrastructure fund listed as a real estate investment trust based in the United Kingdom. The company owns a portfolio of on- and offshore UK wind farms.
Its wind farms generate clean electricity that's sold to the national grid via a long list of corporate clients, including EDF, SSE, Centrica, and Axpo, among others. In 2021 the group's electricity generating capacity stood at 1,422 megawatts which is roughly enough to power 1.4 million British homes.
Management returns the bulk of cash flow back to shareholders in a dividend that's linked to the Retail Price Index - a proxy for inflation. With the UK government placing a heavy emphasis on expanding renewable energy infrastructure, the business has been able to rapidly expand its portfolio of assets.
Frequently Asked Questions
-
Being a renewable energy business, Greencoat UK Wind is bound to the same pricing restrictions by the regulator Ofgem. As such, it holds no pricing power over its product. And if price caps are lowered, it will directly impact the group’s profitability, given the fixed-cost nature of the business.
However, with demand for green electricity continuing to rise thanks to the growing popularity of electric vehicles, the firm’s wind farm assets have been steadily increasing in value. And when pairing this with a 96% operating profit margin, pressure from regulators may be negligible.
Regardless, investors need to consider all the risks before committing to an investment decision.
-
Yes. Greencoat UK Wind shares pay a cash dividend at an average 41% payout ratio. The stock has seven years of consecutive dividend growth.
-
Greencoat UK Wind shares pay out a dividend four times a year, in February, May, August, and November.
-
Greencoat UK Wind shares are listed on the London Stock Exchange. They can be bought from any investment account that provides access to this exchange platform.
Greencoat UK Wind (LSE: UKW) Latest News
Investing Articles
2 contrasting dividend stocks investors should consider buying
Investing Articles
Best British dividend stocks to consider buying in March
Investing Articles
Last-minute ISA buys! 2 dirt-cheap dividend stocks I’d grab before April’s deadline
Investing Articles
How I’d build a robust beginner portfolio using just FTSE shares and £5k
Investing Articles
How I built £4,000 of passive income starting with £0
Investing Articles
Renewable energy REITS are on sale! Here’s why I’d buy them for massive dividends
Investing Articles
£13,900 invested in this FTSE stock could make me £1,000 in passive income!
Investing Articles
This dividend stock blew me away
Investing Articles
Passive income: my best renewable energy fund pays a 7.2% yield and is 15% cheaper now
Investing Articles
£30k of savings? Here’s how I’d aim to turn that into a £2,100 passive income overnight!
Investing Articles
An exceptional value stock to buy before it’s too late?