Greencoat UK Wind PLC (LSE:UKW) increased its dividend by 14% more than its target in 2023 and said it is confident it can pay the same amount again in the current year.
The trust, which is one of the UK’s largest wind farm operators, announced a payment of 10p per share for 2023 against a target of 8.76p.
Compared to last year, this year’s target of 10p target is also well above the current rate of retail price inflation, it added.
"Our investment objective has remained unchanged over the last 11 years since listing: to provide shareholders with an annual dividend that increases in line with RPI inflation while preserving the capital value of the investment portfolio in real terms," said the statement.
Greencoat said it generated 4.7 GWh of electricity in 2023 which was 1.5% of UK demand and enough to power 2.3 million homes.
During the year, it invested £821 million into Dalquhandy, London Array, South Kyle and Kype Muir Extension wind farms, increasing net generating capacity by 397MW and taking the gross value of the portfolio to £6.2 billion.
Total Shareholder Return for the year was 5.4%. NAV decreased by 3 pence per share to 164.1 pence per share, including the effects of a material increase in the portfolio discount rate.
Cash generated during the year was £405 million with divided cover above 2.1 times.
Lucinda Riches, chair, added: "With the final dividend for the year, our investors will have received over £1 billion of dividends since listing.
"With our continuing strong cash flow and dividend cover, we can confidently target a dividend of 10p per share with respect to 2024, extending our track record of attractive dividends and returns.
"We are now delivering net returns to investors of 10% on NAV, and we remain confident in our ability to continue to meet our objectives of dividend growth in line with RPI and capital preservation in real terms."