Greencoat UK Wind (UKW) 🌬 - Share Chat

I see there’s a quarterly dividend payment due in November. This probably gets asked a lot, but I’m curious to know how this is displayed in FT as it’s my first one? Does it get listed in activities as a separate entry or does it just appear in the account section as money available to invest?

Thanks,

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On or around the payment date you should get a pop up notification from FT letting you know you’ve received a payment.

It will be listed in you activity feed and the funds will be added to your account.

Congratulations on your upcoming dividend, I should be getting one for Greencoat too :grin:

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It’ll look something like this in your activity tab:

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Great, thanks!

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You also get a email with a full breakdown.

There can be a lag in getting the email / notification and getting the funds. Some dividends distribute a few days later than the payment date shown.

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UKW has announced a 1 for 13 placing, with existing investors offered the opportunity to exercise their entitlement plus apply for additional shares at this price, subject to availability. The price is 132p, so not a huge discount to the current price. If of interest to anyone here’s the link to the prospectus:

https://www.greencoat-ukwind.com/investors/report-and-publications/2021

As I’ve not heard anything from Freetrade (it was announced on 5th November) should I assume they are unable to support this kind of action? Apologies if this has been discussed and confirmed elsewhere…

Given the small discount my interest isn’t great in this instance but would be good to know for future similar situations should I want to participate and avoid dilution.

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I presume not as well, I hold these shares with 212 and they offered the reduced price to me on their platform through a simple link.

Any feedback from FreeTrade on this?
I agree that it’s a small discount but I’ve been steadily growing stake in Greencoat and would happily subscribe…

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I was curious about how Freetrade handle open offers too. I hold shares of greencoat on X-O and got a letter in the post to apply for the shares.

I emailed the FT team to ask if they would be able to support the offer and here’s their response :disappointed::


"Unfortunately, at present, Freetrade is not operationally set up to support Rights Issues, Open Offers and similar events which involve subscribing to more shares. We also do not offer Proxy voting.

"Really sorry to disappoint you on this.

"We are working to allow this in the future but do not have a timeframe to share on this right now.

"We do currently support voting on some takeovers and tender offers. Our Corporate Actions team will reach out to you with an election form for any event you may be entitled to participate which we are able to facilitate.

"For more information on this, please check our Terms & Conditions (here - section 24.1).

“Again, really sorry to disappoint here, let me know if you have any questions!”


Would be a few unhappy investors were one of the more commonly held stocks to launch a rights issue at a significant discount with no option to participate…

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UKW are also on PrimaryBid I noticed.

Out of curiosity what reasons are people invested in this trust?

From me it’s the 5.4% yield, and the quarterly payouts, but the main reason is they recently invested in the Douglas West Wind Farms which is right where we scattered my dad’s ashes.

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Yea its definitely not for the increase in share price… I need to dig into it again, I assume (maybe someone can correct me) like a lot of energy trusts/companies the value per share tends to stay roughly the same due to a mix of the nature of the type of asset simply producing energy than the asset increasing in value, and due to paying out profits of energy generation and creating more shares when buying more assets.

Its a great stock. One of the best ways to invest in clean energy in my view. Very well run fund who know exactly what they are doing. Low risk strategy that delivers high yield dividends linked to inflation. I have this as a hedge against the more volatile growth stocks. The idea is that the share price stays boringly flat and you just pocket the dividends of 5-6% every quarter.

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That is right. Its classic infrastructure investing. The net asset value (NAV) is the key metric. This should be flat or slowly rising as they gain new value from efficinetly managing the portfolio or buying up new wind farms at good prices. The profits they make from selling energy (which is largely guaranteed by previous government subsidies) is essentially distributed to share holders while they periodically recycle or raise cash to go into new acquisitions that prop up the NAV and offset asset depreciation. Like all stocks, there are still risks attached and if the NAV goes down (eg if they buy assets that prove to be duds or the future value of energy sales collapses for whatever reason) the SP will go down but I see this as a very conservartive investment for anyone happy with 5-6% returns. Great to have as part of a balanced portfolio.

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Thanks for sharing. Agree this would be an issue for some investors, especially high net worth. A good reminder that Freetrade are still at the start of their journey with a product that is still not far off MVP.

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Appreciate the insight and thoughts. I’ve been looking at them in more detail to include along side some of my other more growth focused trusts. I do agree with your points

Well you have all talked me into buying more of these today :slight_smile:

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