I am very interested in renewable power stocks solar wind. These are to me the stocks of the future and hopefully once more governments back them it will be better. For now usa stocks showing strong results and uk too. Anyone else invest in this sector and gave give advice. Cheers enjoy your xmas hols
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Iâve got a few, i like them for the quarterly dividends. And lately most of them have taken a hammering so the share price went dirt cheap and the yields went up nicely if they can be maintained.
The ones i hold are GSF, NESF, FSFL, SEIT, GRID and HEIT
They are either solar power or battery storage for the main part.
There are quite a few out there and who knows if they will all carry on or will start merging.
Lots of research to do and good luck in your search.
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I think tech and renewables are stocks to buy for future. Ive bought some uk and us stocks some have good dividends such as foresight solar. The mistake ive learnt is these stocks have gone down past year so buy while reasonable. I panicked before and sold but now ill wait it out and hold on to them.
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I couldnât give âadviceâ as a Layman, though fwiw I hold UKW, ORIT, NESF. Yields are quite good and generally trading well below their NAV.
I believe that because a lot of these companies are investments based on borrowed money, the increased interest rates are the reason why theyâre trading below NAV- and next year they may possible trade closer to NAV value. Purely IMO.
Renewables are ~20% of my portfolio.
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Yes im a big advocate on renewables not just for enterprise growth but on non fossil fuel based energy sources. I also invested in tech stocks from u.s too. Actually my stocks there are growing well compared to uk right now. I advise having both as it can lessen sudden losses.
ENPH & TSLA are my lot
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Greencoat UK. Also pays a good dividend
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AIC renewable infrastructure.
Some have high debt which will be holding them back.
But it appears to be across the board.
As in some with no debt are lowly valued.
The smaller ones sub ÂŁ200 will probably either merge or wind down (sell assets). If that happens you should get close to NAV.
IE this sector warrants research.
https://www.theaic.co.uk/aic/find-compare-investment-companies?sec=REI&sortid=Name&desc=false
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Yes agree. I like this share
Here is just how stupid the market can be âŚand the opportunities it supplies. The artic.e below is from 28th November 2023.
Both shares are available on freetrade.
"Tardy ROOF
Atrato Onsite Energy (ROOF ), which today said it had arranged a ÂŁ30m secured, interest-only credit facility over three years, yields 6.9% and stands on a 22.5% discount.
ROOFâs share price first slid below asset value last October. With a market value of ÂŁ108m, ROOF is one of the smaller funds in the sector, which may deter some large investors but is unlikely to be the main problem with the rating. It is a relatively new fund, having successfully floated in November 2021, and paid its first dividend in May 2022.
ROOF took a while to invest the proceeds from its initial public offer (IPO) and so had to pay its first few dividends from capital rather than income generated from holdings. That is not ideal and is one reason why the discount emerged last year and why it may persist for a while yet.
The companyâs target dividend for the financial year to 30 September is 5p per share, unchanged on a pro-rata basis from the previous year. In June, in half-year results to 31 March, dividends were still running ahead of operating cash flow. However, helped by investment into a ground-mounted solar project, it could at 31 May finally claim to have fully committed its IPO cash.
A sizeable proportion of this represents commitments to assets that are not yet operational and cash-generative, so we are still some distance away from full coverage of ROOFâs dividend. If I were investing for income, this is not a fund that I would pick, but it should at least be on a firmer footing at some point next year.
GSEO departure
VH Global Sustainable Energy Opportunities (GSEO ) is a few months older than ROOF, having launched in February 2021. It yields 7% and trades on a near 28% discount. GSEO was much quicker off the mark to get its IPO proceeds invested with 92% deployed or committed by September 2021. By the end of June 2022, GSEOâs dividends were covered by cash flow and, at the beginning of this year its board felt able to hike the dividend by 10%.
Early in August 2023, GSEO said that its dividend was 1.3 times covered and that it expected that to strengthen as more of its portfolio became operational. This is all encouraging stuff, but investors were unnerved by the early departure of the lead manager Anthony Catachanas in July. This might impact on the fundâs ability to close its discount, but it does not explain why it should be wider than ROOFâs, given the progress it has made. Witan (WTAN ) disclosed a stake last month."
Presently GSEO on a 27% discount
ROOF 20%
Today 31/12/23
GSEO total assets ÂŁ439 million Decent size so good chance still here in 10 years.
ROOF ÂŁ138 million To small. Good for a short term profit if it winds down at NAV.
From
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Constellation Energy is hot at the moment. They are a young company that was deinvested from their parent, becoming a independent energy supplier with a good customer base already in place.
Like all energy suppliers across western countries, they are investing and transitioning to green energies. The global deadline is by 2050.
Investing in them will help with the transitioning. The stock did grew sufficiently in 2023 and they are still a BUY. The performance of the business is doing well and their financial health is very good.
China and Japan are aiming to be net-zero by 2050 - So, I shouldnâtâ just say âwestern countriesâ it is a global affair.
GSEO up 15% today.
The market MAY have turned for renewables.
One day they will have market share on energy prices so maybe down at the moment but once they start to take over from gas!! Well then we will get a decent sp
Looking at my post of February there was a significant fall followed by the 15% rise. We are now back in falling market for the renewables sector.
In the case of GSEO they have minimal debt and as of Friday 69% of projects up and running, the remainders costs are covered by cash in the bank.
So a covered dividend (1.1 times) and a discount to NAV of 35%.
Forward dividend is only 7.8%. only as in there is better like the 11% plus from next solar energy.
I have both and I expect a better total return from GSEO.