Wind v Solar Income Investing
27th August 2023
Over the last five years energy and in particularly renewable energy has been a key focus for the portfolio and holdings when seeking new sources of dividend income.
My plan is to ensure the portfolio gradually leans towards better ESG goals that can help the environment, whilst supporting the cause towards a more sustainable future for both our planet and mankind.
Now I have reached my aim to hold equal shares in both wind and solar assets in two separate Investment Trusts I’ve been eagerly waiting to write this article:
Many income seekers like myself at first questioned the reliability of the renewables sector, especially any income derived from it, as it has been untested until the last 10 years.
In 2014 I started a small savings account testing dividends until 2018. Then in 2019 I started building two positions in separate solar and wind investment funds.
Now England being an island surrounded by the sea and able to capture the wind that flows off the Atlantic, one would think there would be an abundance of wind creating constant electricity generation and revenues, but not necessarily.
On the other hand with solar, the sun is a constant as it rises every day and sets at night guaranteeing daylight each and every day. It doesn’t have to be clear blue skies either to generate power although I does help.
Now as the majority of the British people discuss our weather regularly and internationally we’re well known for our cloudy skies and rainy summers, in this investment case who’d win:
Wind or Solar?
The portfolio is set to receive the following:
1, NESF dividend £0.0280 per share £166.40 per quarter or £665.60 annually
2, TRIG dividend £0.0179 per share £143.20 per quarter or £572.80 annually
So Solar is the winner but not by much!
Renewables do pay!
I like the fact that when the sun’s not shining, then the wind may blow, which is a win win for any portfolio.
Whether you are an international reader / investor it may be worth checking our your local renewable plays as an alternative income source.