Octopus Renewables Infrastructure Trust PLC on Friday said it would be increasing its annual dividend target, reflecting the positive progress it has made to date.

Octopus Renewables is a London-based investment trust dedicated to investment in electricity generation assets in countries including the UK, France and Spain.

For 2023, the company has increased its target dividend to 5.79 pence per share from 5.24p.

This is the second consecutive year that Octopus Renewables has upped its dividend target in line with inflation, and represents an 11% increase over its 2022 guidance.

The company remains on track to deliver its current dividend target for 2022 of 5.24p per share. It expects the dividend to be fully covered by cashflows from operating assets.

‘Increasing our annual dividend target by 11% for the new financial year reflects the positive progress made by the company to date. This has been driven by our diversified portfolio of assets, spanning seven countries and four technologies, from which 53% of forecast revenues over the next 10 years are explicitly inflation linked,’ said Chair Phil Austin.

‘Along with our investment manager’s successful delivery of construction projects, the existing operational portfolio has allowed for 546 megawatts of operational capacity to now contribute to ORIT’s dividend cover.’

Octopus Renewables shares were trading 0.5% higher at 95.90 pence each in London on Friday morning.

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