Highlights

• Greencoat UK Wind paid four quarterly dividends totalling 10.54p, rising from 2.59p to 2.68p during the window.

• The board targets 10.7p for 2026, which would mark the thirteenth consecutive inflation-linked increase in dividends.

• Dividend cover for the first half of 2026 was 1.9x, according to the half-year results.

• Shares closed at 120.80p on 6 November 2026, a 10.78% discount to net asset value.

Inflation-linked increases are the promise on the label. Greencoat UK Wind (LSE:UKW) paid 10.54p over the past year, stepping its quarterly dividend up from 2.59p to 2.68p, and its board targets 10.7p for 2026, the thirteenth consecutive rise. At the 120.80p close of 6 November 2026, the paid Yield is 8.73% for this FTSE 250 wind farm owner.

The four payments

Quarterly dividends of 2.59p went ex on 13 November 2025 and 12 February 2026, with payment on 28 November and 27 February. The rate then rose to 2.68p, ex on 14 May and 13 August 2026, paid on 29 May and 28 August. The total of 10.54p is 1.7% above the 10.36p shown in a published annual figure. No Special Dividend appears in the record. For holders of LSE:UKW, the increase arrived with the May payment.

Yield on target

The 2026 target of 10.7p per share implies an indicated yield of 8.86% at 120.80p. The paid yield is 8.73%. A figure of 9.25% was shown elsewhere, but it is higher than the paid yield and probably reflects an older price. Yields move with the share price, so a current quote is needed for a precise figure.

Cover, cash and debt

The half-year results to 30 June 2026 put dividend cover at 1.9x. Net cash generation was 222 million pounds, up from 163 million pounds a year earlier. Aggregate group Debt fell by 56 million pounds to 2.07 billion pounds, and 200 million pounds of debt maturities were refinanced. Net asset value was 134.1p per share at the half-year, and a more recent figure of 135.40p leaves the shares at a 10.78% discount.

How Inflation linking works

Many wind farms receive Revenue that is linked to inflation, either through government support schemes or through power contracts. When inflation rises, revenue can rise with it, which supports a dividend that increases in line with prices. The link is not perfect, because costs and power prices also change, but it explains why the board uses inflation as its guide for increases.

Risks

The trust owns UK wind farms, so Earnings depend on wind output and on power prices. Its debt of about 2.07 billion pounds adds sensitivity to interest rates and refinancing. The discount shows that the market values the shares below the reported figure, and the inflation-linked target is a board aim, not a promise.

Putting 10.54p in context

A holder at 120.80p received 2.59p twice and 2.68p twice, equal to 8.73% in cash. The step from 2.59p to 2.68p is an increase of about 3.5%, which fits the inflation-linked approach the board describes. The paid total is a little lower than the 10.7p target because the higher rate applied for only two of the four payments.

Weather and output

A wind farm earns money only when the wind blows, so output varies from year to year. A calm year can reduce generation, while a windy year can raise it. The trust holds many farms across the country, which smooths the effect, but a run of weak wind can still affect cash generation and therefore the Margin of dividend cover.

Liquidity and dealing costs

The ease with which shares can be bought and sold affects the return an investor actually achieves. A wide gap between the buying and selling price, called the spread, adds to the cost, particularly for smaller companies and trusts. Using limit orders can help to control the price paid. Investors should also check how many shares typically change hands each day.

Looking beyond a single payment

One dividend does not show a trend. Looking at several years of payments, the split between interim and final amounts, and any special payments gives a clearer picture of how reliable the income is. It is also worth checking whether the dividend has been funded from profit, from reserves or from borrowing, because only the first can be repeated indefinitely.

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.

What to watch next

The 2026 target of 10.7p is the main marker, along with the 1.9x cover reported at the half-year. Watch the 10.78% discount, which can move with interest rates, and the group debt of 2.07 billion pounds. Wind output in the second half and power price forecasts will influence net asset value at LSE:UKW.