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Greencoat UK Wind Resets Dividend Linkage After RO Indexation Change

Story Highlights
  • Greencoat UK Wind revised its NAV and shifted its dividend indexation from RPI to CPI following the UK government’s change to Renewables Obligation inflation linkage.
  • Despite lower-than-budgeted 2025 wind generation, strong cash generation and dividend cover leave Greencoat UK Wind’s inflation-linked payouts and balance sheet robust, with shares trading at a steep discount.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Greencoat UK Wind Resets Dividend Linkage After RO Indexation Change

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Greencoat UK Wind ( (GB:UKW) ) has shared an update.

Greencoat UK Wind has adjusted its net asset value and dividend policy following the UK government’s decision to switch inflation indexation for the Renewables Obligation scheme from the retail price index to the consumer price index from April 2026. The unaudited NAV per share as at 31 December 2025 was revised down from 136.1p to 133.5p, consistent with earlier guidance, while the board has reset its dividend policy so payouts are now targeted to grow in line with CPI rather than RPI; despite lower-than-budgeted wind generation in 2025, dividend cover remained strong, supported by robust net cash generation of £291m, asset disposals and debt reduction, leaving the trust with one of the sector’s more resilient, inflation-linked dividends and scope to fund new investments, buybacks or further deleveraging at a time when its shares trade at a significant discount to net asset value.

The most recent analyst rating on (GB:UKW) stock is a Buy with a £125.00 price target. To see the full list of analyst forecasts on Greencoat UK Wind stock, see the GB:UKW Stock Forecast page.

Spark’s Take on GB:UKW Stock

According to Spark, TipRanks’ AI Analyst, GB:UKW is a Neutral.

The score is held back primarily by the sharp deterioration in profitability/revenue in the latest period despite strong cash flow and a manageable balance sheet. Technicals are mildly bearish (below key moving averages and negative MACD), while valuation is supported by the high dividend yield but tempered by a negative P/E. Corporate actions (share buybacks) provide a modest positive offset, with some regulatory risk noted.

To see Spark’s full report on GB:UKW stock, click here.

More about Greencoat UK Wind

Greencoat UK Wind is a London-listed renewable energy infrastructure investment company focused on acquiring and managing operational UK wind farms. It provides investors with exposure to long-term, inflation-linked cashflows from onshore and offshore wind assets, targeting stable income and capital growth within the UK renewables sector.

Average Trading Volume: 4,791,194

Technical Sentiment Signal: Sell

See more insights into UKW stock on TipRanks’ Stock Analysis page.

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