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A whopping 9.8% dividend yield at a 20% discount! Is this a screaming buy?
['Zaven Boyrazian', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
The London Stock Exchange is filled with tremendous dividend yield opportunities, and few look as striking on paper as Greencoat UK Wind (LSE:UKW).
The renewable energy trust currently offers a chunky 9.8% payout while trading at a substantial discount of around 20% to its net asset value!
However, with war continuing in the Middle East, power prices are back on the rise.
And with a significant chunk of Greencoat's revenue stream exposed to market rates, the company's seemingly well positioned to benefit from rising energy prices in the UK.
Net asset value per share dropped 11.7% over the year, and gross debt stood at £2.13bn, representing 42.5% of gross asset value.