One should reinvest dividends into new shares… I think they continuously issue new shares, as many opt into SCRIP (taking dividends as shares, not cash). And they raise new funds by way of selling shares.
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I think large established companies like National Grid are that way because there isn’t really enough scope for growth to justify keeping all the shedloads of cash they make and reinvesting it all for growth. It makes more sense to payout part of the profits to shareholders.
Not sure how much this applies to smaller renewable focused players, but I expect they are going for a model where they payout profits rather than going for aggressive growth
TRIG’s yield is currently around 5% If you reinvest the dividends so that it compounds that is a pretty good return. You might be able to do better with high growth stocks, but they may come with higher risks as well
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It’s more specific than that I think. Look up almost any physical infrastructure based company and they almost all pay out much higher dividends than other companies regardless of their age. It doesn’t seem to matter if it’s solar, wind, gas pipelines or electric infrastructure. Perhaps the only difference is the the more established ones pay higher dividends.
I suppose it does still come down to less scope for growth though, they can’t just build more infrastructure for the sake of it and expect that to grow revenues. But once their infrastructure is in place they just need to maintain it and rake in the cash
When they so build more infrastructure it’s more likely in the form of less frequent large projects, it may be more efficient to use debt for that rather than just sitting on piles of cash
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I moved my TRIG money into INRG (Global Clean Energy) and haven’t looked back, there’s plenty of growth in green. I am not interested in dividends though so different priorities.
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For investments such as TRIG, I think the Net Asset Value (NAV) is key to driving the share price. There are various components likely to move this, and should be explained in their reporting. Below is a chart from the TRIG half year report showing information about their NAV and impacts on it’s calculation:
It appears that power output, power price, inflation, costs and discount rate create the greatest impact on NAV. Discount rate is an assumption (a guess?), and inflation is beyond their control.
Price is dependent on how TRIG are selling their electricity, which is moving more towards the wholesale market:
This would leave TRIG (and their NAV) exposed to the movement of power prices, rather than relying on subsidies.
Output and costs are more in TRIGs control.
I don’t own TRIG, but from having a quick skim their reporting looks pretty transparent.
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I like TRIG price stability, and the fact that there is no stamp duty. And dividends are tax free for me (as they are within dividend allowance).
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TRIG rights issue announced today. First time for me in this situation but I intend to exercise my right and buy the 1 for 10 shares.
Looking at other threads here, Freedtrade seem to manage rights issues smoothly.
Anyone else got experience of this?
That is an issue of perspective only.
What I mean by that is the share price is only one such indicator of growth in a portfolio.
Take TESLA, if you were an investor in them, you would stand to be clearly in the green or the red at any one time & most likely it would enormously influence the overall portfolio value of a smaller scale retail investor. In that sense, stock growth, or shrinkage, is obvious.
Now, buy TRIG & with each subsequent dividend payment, reinvest. Ok, so even if the overall stock valuation hardly moved a needle, each time your reinvestment bought another share you are increasing the value of your portfolio, both today & yet further tomorrow.
Compound growth might not be as sexy as big green margins but it is far more predictable, stable & is growth nonetheless.
Only patience & looking beyond superficial indicators of margins, stands between people realising the true worth of a stable dividend paying stock.
Ask yourself, are you long or short term minded?!
Hint: Get rich quick schemes are rarely legit or sustainable opportunities. 
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Thanks for the heads up! Will freetrade manage this through the app?
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The terms and conditions say they manage rights issues. I’m not sure if it’s thru the app. I guess so… anybody know?
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I’m long term minded and go for both growth and dividends.
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Yeah, sorry. I had tried to reply to an earlier comment & it landed in the wrong order to be directed to its poster. As you were folks!! 
And Engelbert1969, a good mix of investments are crucial - diversification is not only in industry or company but in all facets of potential returns. I’m with you entirely 
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No worries, all good. I might start a new thread specifically on rights issues…
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Had advice from customer services this evening that this TRIG issue will not be supported. A shame but I guess it doesn’t matter too much as the share price is creeping near the offer price at the moment anyway.
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The KID leads to a page that doesn’t have any document. Could you please look into this to rectify it. Thanks!
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It’s a earner and at 5-6% a quarter/ or half! It’s paying more that a bank interested, probably been down about 1p in 3/4 months very safe share I think profit is profit
I’ll be joining you @SubOnly when I get more funds available Esp just before the ex dividend date 
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I got a mail regarding this stock as it is being offered on primary bid.
Which sounds odd. They are raising more capital because they are breaching terms of their revolving credit facility. As per last report net assets are 114p per share, yet selling new shares at 124p. Also, year to 31st December they had 100M income and paid out 107M in dividends. 6 months to June this year 37M profit and yet they paid out 62M in dividends. They reaffirmed current level of dividends of 6p or some such, and yet income in first six months was 1.8p per share.
Seems like their finances deteoriated this year, hence the capital raise.
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