Greencoat UK Wind PLC (LSE:UKW) has announced an increase in its dividend alongside a £100 million share buyback programme.
Laying out plans to bump up its full-year payout to 10p per share through a 3.43p fourth-quarter dividend, the company cited strong cash generation and its solid balance sheet.
Next year’s dividend will also come in at 10p per share, the company said in a statement, marking an increase from the initially targeted 8.76p.
“Since listing in 2013, UKW has established a strong track record of delivering significant shareholder value, having paid £887 million of dividends to date and reinvested £877 million of excess cash generation,” chair Lucinda Riches said.
The move reflects Greencoat’s “market leading position, as well as the company's strong prospects, balance sheet and cash flow generation”, she added.
Greencoat added it expects to increase future dividend payments in line with the retail price index, as is the company’s policy.
The share buyback will commence shortly, with 347,506,861 shares, equating to around 14.99% of Greencoat’s issued capital, set to be repurchased no later than 25 October 2024.