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
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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.
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Yes. Greencoat UK Wind shares pay a cash dividend at an average 41% payout ratio. The stock has seven years of consecutive dividend growth.
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Greencoat UK Wind shares pay out a dividend four times a year, in February, May, August, and November.
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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.