Dividend yields balloon on renewables and infrastructure investment trusts

Published: 05:50 16 Apr 2025 EDT

Dividend yields on renewable energy infrastructure and infrastructure investment trusts are close to all-time highs, data from the industry data shows.

The average yield of the renewable energy sector spiked to 10.6% this month, an all-time high, the Association of Investment Companies (AIC) said.

For infrastructure investment trusts, the yield is 6.4%, with a record of 6.8% on 7 April.

The recent market sell-off sparked by Donald Trump's new US tariffs has led to yields in both sectors ballooning to all-time highs.

Shares prices for these trusts are at historically wide discounts to their net asset values, with a 21% discount for infrastructure trusts and 33% for renewable energy infrastructure.

"Performance of both these sectors has suffered in the last three years as rising interest rates and cost disclosure issues have taken their toll," said AIC director Annabel Brodie-Smith.

"However, analysts believe the pessimistic view of these infrastructure sectors is overdone and there’s reason for optimism," she said.

"The infrastructure dividend yields are some of the highest on the UK market, offering resilient income in an uncertain world.

"There has been some corporate activity within the sector and there are predictions of more to come. Boards are acting proactively for their shareholders, undertaking more share buybacks and realising assets. The market has priced in interest rate cuts which would benefit these investment trusts."

She noted that investors should "do their homework" and thoroughly research investment trust options and should speak to a financial adviser if they have any doubts.

Renewables investment trusts; Yield (%); Discount (%)

Bluefield Solar Income Fund (LSE:BSIF); 9.54; -26.20

Downing Renewables & Infrastructure Trust PLC (LSE:DORE); 7.93; -35.86

Foresight Environmental Infrastructure (LSE:FGEN); 0.94; -33.81

Foresight Solar Fund Ltd (LSE:FSFL); 9.96; -28.71

Gore Street Energy Storage Fund PLC (LSE:GSF); 12.07; -42.43

Greencoat Renewables PLC (LSE:GRP); 9.30; -34.56

Greencoat UK Wind PLC (LSE:UKW); 9.58; -28.82

Gresham House Energy Storage Fund PLC (LSE:GRID); 9.02; -44.93

HydrogenOne Capital Growth PLC (LSE:HGEN); n/a; -77.10

NextEnergy Solar Fund Ltd (LSE:NESF); 12.34; -30.13

Octopus Renewables Infrastructure Trust PLC (LSE:ORIT); 9.33; -35.79