“The Board of Octopus Renewables Infrastructure Trust plc is pleased to declare an interim dividend in respect of the period from 1 October 2023 to 31 December 2023 of 1.45 pence per ordinary share, payable on 23 February 2024 to shareholders on the register at 9 February 2024 (the “Q4 2023 Dividend”). The ex-dividend date will be 8 February 2024.”
From Freetrade as divi notice:
Shares held on ex date 1,331
Amount per share £0.008642
Tax withheld (0%) £0
Total dividend £11.50
This is a share i totally dont get…the company is well respected, wins the WHICH report on best energy supplier regularly, and has a big continuosly growing customer base, but its share price keeps falling. Yes it spends alot of money, but service continues to get better, the old adage of you gotta spend money to make money is very relevant here.
What am i missing in this?
(Im just a part time investor, trying to add a bit more to the pension pot, dont really get the technical ins and outs, i just buy for dividends and a decent return on my money)
It’s worth noting this isn’t Octopus Energy itself i.e. the energy company you can have as an electricity and gas supplier, I’ve now renamed this share chat to the correct company name.
Most of those things you stipulated (like Which best energy supplier etc) wouldn’t get factored in with investors, a growing customer base would, but as mentioned this stock isn’t the energy supplier and works on entirely different fundamentals
It’s more akin to companies like Greencoat Wind, TRIG, Bluefield Solar.
Where they either fund renewable energy projects (wind turbines, solar farms etc) or buy a partial or full share of existing energy projects, they then sell the electricity generated onto the energy suppliers, in an oversimplified sense, which is how this company generated its revenue and profit/loss
Higher interest rates wouldn’t have helped this or other renewable energy investment trusts to invest in additional energy projects, compared to the prior decade or so of low interest rates.
The dividend is secure because ORIT has high revenue visibility.
The leverage is on the higher side but a positive is that its euro-denominated, which is quite an attractive hedge.
It’s a bit of on outlier with the largest renewable trusts at a discount over 30%, compared with around 15-25% for the likes of UKW and TRIG. With the backing of one of the largest utilities in Europe, disciplined management that is recycling capital (Polish assets sold at IRR >30%) I don’t think this discount is warranted, so I am still adding, especially as its one of the most diversified trusts out there.
On the list with NESF for removal from FTSE 250.
Hence share price falling as it will be sold by the ETFs
Not guaranteed to be removed see link with dates.
Wait and see if you can buy cheaper?
You decide.