NextEnergy Solar Fund
NextEnergy Solar Fund (Ticker: FTSE 250 : NESF) Limited in a closed ended investment company and is one of the largest solar funds on the UK stock exchange.
NESF was founded in 2007 and since inception has built and installed solar assets in excess of £1.03 billion pounds.
As of September 2021 the group has a portfolio of 99 assets, 91 of which are in the UK and 8 are in Italy (Map of the Italy assets can be found at the bottom of the page) with a 895 megawatt capacity.
Since the IPO the power generation has been 3.7 Terawatt hours
During the final quarter of 2021 a £50 million investment was made to an International investment trust called NextPower III, adding 30 Megawatt of power to NESF’s installed capacity.
NextEnergy Solar Fund is a relatively new additional to my SIPP portfolio. During 2023 I have increased holdings as shares in REIT’s have been an unloved sector, therefore picking up stocks at well discounted levels.
The portfolio’s objective is to have equal weight shares of renewables that can help provide investors a better comparative analysis over Wind verses Solar, which is better?
Part of my thesis is to tilt towards better ESG credentials within the portfolio. Those of you wishing to ethically invest, then this is a 100% green power generation play, hence for the inclusion into the SIPP.
You will find an investor Factsheet by clicking here.
Next Energy Solar Fund Dividends
NESF pays a quarterly dividend in the months of March, June, September and December each year, where the dividend has been steadily growing over time.
As I would like to eventually tilt more towards ethical investments and the portfolio is geared towards dividend growth, I carefully selected just one solar stock that I perceived to have good income growth potential over the coming years.
After all the aim of the portfolio is to compound dividend income whilst we are reaching for financial independence and early retirement.
The groups 2023/24 quarterly dividend has been increased to £0.0209 pence per share.
Annualised £0.0836 per share
(£0.0188p – 2022/23)
(£0.0179p -2021/22)
Dividend yield is 10.40% (30.09.24)
Estimated NAV is £101.34 (30.09.24)
The portfolios total income received in 4 years from Next Energy Solar Fund is £1,401.58
As you will see below the first two quarterly dividends received were based on just 400 shares.
Over the course of 2022/23 I significantly increased the holdings to 8,000 shares, equal to that of wind generation.
Further dividend analysis can be viewed in the file below:
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