Highlights

• Foresight Environmental Infrastructure paid four quarterly dividends totalling 7.98p per share with ex-dates between December 2025 and September 2026.

• The latest quarterly payment of 2.01p went ex on 3 September 2026 and was paid on 25 September.

• The board targets 8.04p for the year to March 2027, a 1.0% increase on the current year.

• Reported Dividend cover of 1.25 times for the year gives some protection, though gearing of 29.8% adds risk.

Small steps, every year. Foresight Environmental Infrastructure (LSE:FGEN) has raised its dividend target again, to 8.04p for the year to 31 March 2027, which would extend a run of annual increases to twelve. The latest quarterly cheque already reflects it.

Four quarterly payments

The first, 1.99p, went ex on 4 December 2025 and was paid on 30 December. The second, 1.99p, went ex on 5 March 2026 and was paid on 27 March. The third, 1.99p, went ex on 4 June and was paid on 26 June. The fourth rose to 2.01p, went ex on 3 September and was paid on 25 September 2026. Together they make 7.98p, and no Special Dividend was found. For holders of LSE:FGEN, the payments arrive near the end of each quarter.

Yield workings

The share price used is near 90.45p, with no date attached. The paid trailing Yield is 8.82%, from 7.98p over 90.45p. On the 8.04p target the forward figure would be 8.89%. A published trailing yield of 9.14% is a little higher, which probably reflects an earlier share price. The yield will change whenever the price moves.

Record of increases

A year earlier the quarterly payments were 1.95p in March and June 2025 and 1.99p in September 2025, so the rate has climbed gradually. A company announcement describes the new target as a 1.0% increase and the twelfth consecutive annual rise. That makes a published 11-year growth count look one short, and the announcement is the better guide.

Assets and results

Foresight Environmental Infrastructure invests in environmental infrastructure and is listed in London. Its unaudited net asset value was 655.5 million pounds, or 105.2p per share, at 31 March 2026, with total return of 2.5% for the quarter and 6.2% for the year. Anaerobic digestion life extensions added 1.4p per share to the value. The shares are not in a FTSE UK index.

What the portfolio does

Environmental infrastructure includes renewable energy, waste and bioenergy projects and other Assets that earn regular income, often under long-term contracts or with support from government schemes. The cash flows can be predictable, but they depend on power prices, Inflation and the operating performance of each project. Valuation of the portfolio relies on forecasts of these factors over many years.

Cover and risks

Dividend cover was reported at 1.25 times for the year, a cushion rather than a wall. Gearing of 29.8% magnifies the effect of falling valuations. Power price forecasts and inflation assumptions drive the net asset value, and both can change. A published Payout Ratio of about 134% sits uneasily beside the reported cover, so readers should check the latest accounts.

Share price against asset value

At 90.45p, the shares trade below the net asset value of 105.2p reported at 31 March 2026, a discount of about 14%. A discount of that size suggests that the market is cautious about the valuations of the underlying assets or about interest rates. If the discount narrows, shareholders gain from the rise in price, and if it widens, they lose even when the dividend is paid.

Concentration and diversification

Relying on a single share for income exposes an investor to the fortunes of one business. Spreading holdings across sectors and types of company reduces the effect of a cut in any one dividend. Investment trusts and funds can offer built-in diversification, although they bring their own costs and risks. A balanced approach considers how each holding fits into the whole portfolio.

How to read a trailing yield

A trailing yield divides the dividends paid over the past twelve months by the current share price. It describes what has happened, not what will happen, and it changes whenever the price moves. A rising yield can reflect a higher dividend or a falling share price, so the reason behind the change matters. Comparing yields across companies is useful only when the same period and the same type of payment are used in each case.

Ex-dividend dates explained

The ex-dividend date is the first day on which a buyer of the shares no longer qualifies for the next dividend. Anyone who holds the shares before that date receives the payment, normally a few weeks later. Share prices often fall by about the amount of the dividend on the ex-date, which is why a dividend on its own does not create value. The payment date is when the cash reaches the account.

What to watch next

The next milestone is the quarterly dividend due in December and the next update on net asset value. Investors in LSE:FGEN should follow dividend cover, the level of Debt and any disposals of assets. Achievement of the 8.04p target would extend the record of increases to twelve consecutive years.