NextEnergy Solar Fund Ltd (LSE:NESF) has announced a new dividend target of 8.43p per ordinary share for the financial year ending on March 31, 2025 - its 11th successive hike to the payout.
This represents an increase of 1% from the previous year and aligns with the company's commitment to a progressive income distribution policy.
NESF continues to boast one of the highest dividend yields among renewable investment companies, currently standing at approximately 11% based on the closing share price at Tuesday's close (May 14).
This yield reflects the company’s robust financial health and its ability to generate substantial returns for its investors, the company said. Dividend cover is projected to be between 1.1 times to 1.3 times.
Since its inception, NESF has declared a total of £345 million in dividends, equating to 67.8p per ordinary share.
"We are proud to announce NextEnergy Solar Fund's eleventh consecutive year of dividend growth which evidences the strong position the Company finds itself in despite a challenging macroeconomic backdrop for the wider sector," said the fund's chairman, Helen Mahy.
"NextEnergy Solar Fund's dividend per ordinary share is one of the highest among the listed renewable energy investment company sector demonstrating its resilience, which offers investors an attractive dividend yield through access to a high-quality portfolio of solar energy and battery storage assets.
"The company continues to service its progressive dividend by securing future revenue flows, maintaining a robust operational asset base, and continually looking for attractive growth prospects.
"We look forward to continuing to deliver on plans like the Capital Recycling Programme, which should leave NextEnergy Solar Fund in a stronger position than ever."