Virgin post....please be kind :-)
Just realised I haven't got anything to do with Renewable Energy in my portfolio.
Looking for a multi year buy + hold & preferably with dividend & not AIM junk penny stocks that may go bust. Happy to look at Investment Cos investing in renewable energy too.
I like the idea of say Gore Street Energy Storage Fund but fear it will keep raising to expand. ITM & CWR are £billion+ companies with penny revenues
Any ideas/thoughts ?
I’m considering Renewables Infrastructure (LON:TRIG) and Gresham House Energy Storage Fund (LON:GRID) at the moment, I hold a small holding of Gore Street Energy Storage Fund (LON:GSF) and Sse (LON:SSE), already. There are some solar funds also to consider.
I recently bought Downing Renewables & Infrastructure Trust (LON:DORE) and Nextenergy Solar Fund (LON:NESF) at close to NAV on yields of 5% and 7% respectively.
Here is the list of ARR's current royalties:
https://staging.arr.energy/our...
Note: This is partly owned by Altius Minerals (https://altiusminerals.com/).
Of the trusts focusing on this area, I like Nextenergy Solar's combination of yield and a very small discount. Probably prefer inv trusts in this area because it is challenging to pick individual winners, especially from emerging tech like hydrogen. And high growth areas attract competition, which eventually tends to erode margins. So I think a solar trust (Nextenergy) backed by govt subsidies is a safer way to play this theme?
Thanks for replies. Quick question re these funds. Are the re-uccuring annual fees taken off the dividend first ? Say Got £2k @ 10% Divi & £80 annual fees. Does this mean you get £120 net divi ie 6% or has the £80 fees already been deducted to get to a 10% divi ? Many thanks
Hi Colin
As always there is no easy answer, otherwise we would all be on the beach, up a mountain or working just as hard as always.
Prior to the energy price rises I had exited renewables, as the prices just seemed to be going down and capacity, and money going into it upwards, so hence why hold?
I have gone back in the last couple of months (very late to the party obviously) and hold Foresight Solar Fund (LON:FSFL) and Nextenergy Solar Fund (LON:NESF) both smaller holdings, but primarily a good dividend, one fund is income one reinvested, and seems that there is an overall direction.
The other funds below seem all to have fans, but as noted there is no right answer.
Companies always take their money before they pay anyone else! So for example if you hold Vanguard Funds directly, they will deduct their quarterly fees from your cash, and if you have no cash from your bank account...
Cheers
Tommy
Colin.
The charges are NOT taken out of the dividend, so investors get the full declared dividend. And all dividends are tax free in ISAs. The charges are taken out of the share price so investors don’t really notice them. What matters most is performance and dividend yield and whether the Investment Trust is good value or not.
Renewables Trusts are popular with investors so many of them are trading at premiums to Net Asset Value. I much prefer Investment Trusts that are very successful but trading at big discount to NAV (I.e new investors are paying less than the share is worth) . But to find those you’ll need to search out other sectors and regions etc because all the decent Renewables Trusts are trading at premiums to NAV.
Investment Trusts are excellent for novice investors. Far safer than shares. Bombed out sector worth checking out are Health/Biotech and Japan. Buying Trusts after the sector has fallen heavily often rewards strongly.
An excellent site for every Investment Trust is the aic website.
This link takes you to the page for Renewables Trusts:-
https://www.theaic.co.uk/aic/f...
As you’ll see you can find performance figures, dividend yield, charges, discount or premium and more just on that page. Clicking on each Trust heading brings up masses more information including their portfolios and all Company announcements, as long as that Trust subscribes to aic. The vast majority do subscribe. You can search out every Investment Trust and every Investment Trust sector.
Hope this helps to get you started.
Well worth taking a look at DRAX Drax (LON:DRX) despite the hysteria by some posters is a well run profitable company with a long term strategy that would lead to negative carbon power
https://www.drax.com/wp-conten...
Last set of results and future strategy
To all who gave me there time to comment, huge thanks.
For info, I decided the tread the renewables sector with 3x investments into my ISAs
Foresight Solar Fund (LON:FSFL)
NextEnergy Solar Fund (LON:NESF)
Greencoat Uk Wind (LON:UKW)
Good luck all
Hi
Greencoat UK Wind (LON:UKW) an RNS this morning.
Greencoat UK Wind plc (the "Company" or "UKW"), the leading listed renewable infrastructure fund, invested in UK wind farms, is pleased to announce that it has agreed to acquire a net 12.5% stake in Hornsea 1 offshore wind farm from Global Infrastructure Partners ("GIP") for a total cash consideration (including cash and working capital) of approximately £400 million. The acquisition is expected to complete in Q3 2022.
Full RNS here ...
https://www.investegate.co.uk/...
Here is a short Proactive vid about the acquisition ..
This is link to Proactive site and search for Greencoat UK Wind (or the EPIC).
https://www.youtube.com/channe...
Regards
Howard
I don't hold but am looking at it.
Hi
News feed from Foresight Solar Fund (LON:FSFL)
Cancellation of Scrip Dividend
On 29 April 2022, the Company announced a scrip reference price of 113.72
pence per new Ordinary Share under the Company's scrip dividend alternative
for the third interim dividend for the financial period ending 31 December
2021 (the "Q4 Dividend").
In light of the Company's Net Asset Value ("NAV") per ordinary share being
greater than the scrip reference price, the Board has exercised its discretion
to cancel the scrip dividend alternative in respect of the Q4 Dividend. Those
shareholders who elected to receive the Q4 Dividend as scrip alternative will
instead be paid in cash on 27 May 2022 and, should they so wish, can choose to
apply the cash dividend in acquiring additional Ordinary Shares in the
secondary market. The Board will continue to assess the possibility of
offering scrip dividends with respect to future quarterly dividends where the
scrip reference price is above NAV per ordinary share.
https://www.stockopedia.com/sh...
I don't hold, watching it
Regards
Howard
some interesting info on the problems and solutions to excess power and storing power from renewable generation and news of planning application for Expanded pumped hydro at cruachan hydro plant in Scotland
https://www.drax.com/electrifi...
Eminent Oxford Scientist Says Wind Power "Fails On Every Count"
"Now the Oxford University mathematician and physicist, researcher at CERN and Fellow of Keble College, Emeritus Professor Wade Allison has done the sums. The U.K. is facing the likelihood of a failure in the electricity supply, he concludes."
“Wind power fails on every count,” he says, adding that governments are ignoring “overwhelming evidence” of the inadequacies of wind power, “and resorting to bluster rather than reasoned analysis”.
European utilities are undervalued owing to recession fears and pay big dividends. They are at the heart of the energy transition. SSE is the UK option most exposed to the theme. ENEL, RWE and Engie in Europe.
Alternatively look at enablers of the transition, like Schneider Electric, a superb company.
The only realistic carbon neutral power source is nuclear. See Doomberg and many others. It is currently the base of all the others. See Visual Capitalist.
General Electric Co (NYQ:GE) Cameco (NYQ:CCJ) and will need 10x the mining capacity to achieve anywhere near the metals required to electrify the world and vehicles. So Global X Copper Miners UCITS ETF USD Acc (LON:COPG) and silver for all these solar panels Ishares Physical Metals (LON:SGLN).
Coal, LNG and oil to produce the above in the meantime and keep the lights on.
If you want to invest in such things then may as well a China fund - they make most of the stuff.
UK renewables have not performed very well in the last year, probably because of windfall tax. Whilst some in the US, have really taken off, such as First Solar (NSQ:FSLR) and Genie Energy (NYQ:GNE) have more than doubled. I do hold some Cameco (NYQ:CCJ), very volatile share but if you time it right, it's ok. I'm probably going to reduce my UK renewable exposure.
I hold Gore Street Energy Storage Fund (LON:GSF) Personally think Hydrogenone Capital Growth (LON:HGEN) is really interesting, but market thinks otherwise.(They should have a recent Video Chat on website) In my opinion they are wrong- green hydrogen is the future. Spent a time looking at the market for these exposures. Just invested ( it is a punt) in a Welsh Hydrogen Car company. Fantastic idea, car works, been driving around in West Wales. Company is Riversimple- think the off-market funding has now closed. Atrato Onsite Energy (LON:ROOF) is another interesting idea, like the management.
