Octopus Renewables Infrastructure (ORIT) Dividend

[midgesgalore]

Mon 29 Jan 2024 07:00
RNS Number : 1221B
Octopus Renewables Infra Trust PLC
29 January 2024
LEI: 213800B81BFJKWM2JV13

Octopus Renewables Infrastructure Trust plc
("ORIT" or the "Company")
Dividend Declaration

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.

A portion of the Company's dividend is designated as an interest distribution for UK tax purposes. The interest streaming percentage for the Q4 2023 Dividend is 59.6%.

The Q4 2023 dividend is the final of four dividends totalling 5.79 pence per ordinary share for the financial year to 31 December 2023 ("FY 2023"), meeting the Company's FY 2023 dividend target in full. The dividend is fully covered by cashflows arising from the Company's portfolio of assets.

As announced on 18 January 2024, and in line with the Company's dividend policy, the target for the financial year from 1 January 2024 to 31 December 2024 ("FY 2024") is 6.02 pence per ordinary share*. This increase of 4.0% over FY 2023's dividend cover is in line with the increase to the Consumer Price Index (CPI) for the 12 months to 31 December 2023, and marks the third consecutive year the Company has chosen to increase its dividend target in line with inflation. The FY 2024 dividend target is expected to be fully covered by cashflows generated from the Company's operating portfolio.

https://www.hl.co.uk/shares/shares-search-results/o/octopus-renewables-infra-trust-ord-gbp0.01/share-news
The dividend declaration section is on the right side of the HL page.

I hold some of this IT in my ISA income portfolio and have done since its launch in December 2019. After payment and at today's price the trailing 4 quarter yield will be 6%.

midgesgalore

[terminal7]

Unfortunately it's price is down 20%+ which hardly compensates for its dividends

T7

[terminal7]

Continues to sink - decided to sell

T7

[BullDog]

ORIT piqued my interest. I had thought that maybe it was run by the people who run Octopus who I now use for my domestic energy supply. They seem to be a very smart company, privately held.

Though I can't see any connection between ORIT and Octopus. I have been looking at Companies House and can't see a connection.

Does anyone know for certain that ORIT is, or is not, anything to do with the Octopus domestic energy supplier? Thanks.

[UncleEbenezer]

ORIT piqued my interest. I had thought that maybe it was run by the people who run Octopus who I now use for my domestic energy supply. They seem to be a very smart company, privately held.

Though I can't see any connection between ORIT and Octopus. I have been looking at Companies House and can't see a connection.

Does anyone know for certain that ORIT is, or is not, anything to do with the Octopus domestic energy supplier? Thanks.

The answer can be found in obscure places like Octopus's own website, or google or wikipedia.

I come from the opposite side. I've had money invested with Octopus since about 2009 (they're now Britain's biggest VCT manager), but only heard of them in the context of domestic power supply more recently.

[shaunm]

I suggest you review the power market before investing

I exited a number of Renewables last October, including BSIF, DORE, FSFL, GSF, GCP, UKW, NESF & TRIG
due to poor performance, which was mainly due to rising interest rates.
I was also very concerned regarding Future Power Prices, that they could be much lower
Web-sites to Review
https://grid.iamkate.com/
https://www.rte-france.com/en/eco2mix/market-data
https://www.statnett.no/en/for-stakehol ... er-system/

Most of my holding are now in Short-Term Gilts & Bonds

[G3lc]

……..do you think of short term as months, years or longer?

[shaunm]

Mostly under 2 years, but considerable amount held in HM TREASURY GILT 2.75% (07/09/24) (SEDOL:BHBFH45), that is just over 6 months

BRUNTWOOD BOND 6% GTD SNR 25/02/25 GBP100 (SEDOL:BL6THL7)
HM TREASURY GILT 2.75% (07/09/24) (SEDOL:BHBFH45) - 55% of Total holdings
NATIONWIDE B/S 6.25%-FRN SUB PERP GBP1000 (SEDOL:3362796)
OSB GROUP PLC 7.875%-STP SUB PERP GBP1000 (SEDOL:B67JQX6)
REGIONAL REIT LTD 4.5% SNR 06/08/2024 GBP100 (SEDOL:BG1G105)
RMBI BOND 6.25% 6.25% 07/03/2029 (SEDOL:BQB3FY8) This is my longest dated Bond
UK(GOVT OF) 2% SNR 07/09/2025 GBP1000 (SEDOL:BTHH2R7) 12% of Total Holdings

So very much in short dated Gilts
My gut feeling is that short Gilt Yields (under 2 years) will stay high in an Election year and that Inflation is not yet been
tamed - Pensioners 8.5% increase in April

[shaunm]

It should be noted that end of last year (Oct & Nov) considerable amount of cash was moved from "Stocks & Shares" ISA to Cash ISA's Fixed Term Deposits of 1 year duration
YBS offered 5.4%
Royal Bank of Scotland = 5.65%

Tried to move money via "ISA Transfer" to Lloyds Bank, however they never did anything despite calls & letters (3 months of trying)
The Fixed Term ISA account was opened! (I was not a happy bunny)
Lloyds Bank = 5.45% ( I think they had their quota of money, thus not accepting further transfers, my guess!)

[AndrewInDevon]

I am a fan of renewables but you need to look at the structure of each one and take a long view.

I am currently in Greencoat Wind and am likely to put my new year ISA allowance into Bluefield Solar.

Their share prices have all performed poorly as a reaction to interest rates - mainly, in my view, that some bonds have looked more attractive relative to renewables, but this will, in my view, be short-term (meaning less than 2 years).

Neither Greencoat or Bluefield have too much expose to interest rate risk or re-financing risk so will be well placed to cope with what is likely to be a higher rate environment than pre-Covid.

Both funds are trading at an attractive discount as well.

I take a long-term view, aiming to hold for between 5 to 10 years.