As investors seek reliable dividend shares, the infrastructure sector emerges as a promising focus. Beyond just impressive track records, certain stocks in this sector offer high yields that catch the eye of savvy investors. Here are two companies worth considering:
Healthy dividend cover:
- Octopus Renewables Infrastructure Trust, listed on the London Stock Exchange under the ticker symbol “SPEAKS,” stands out for its investment in renewable energy projects like wind and solar plants, as well as energy storage systems. The trust generates income by selling energy to consumers through its infrastructure investments, ensuring strong cash flow to distribute dividends to investors.
- Despite a 24% decrease in share price over the past year, attributed to challenging macroeconomic conditions, key financial factors remain solid. The dividend cover is impressive at 1.33 times, indicating sustainable dividend payouts. Exciting initiatives on the horizon, such as a new power purchase agreement with Sky UK, are expected to drive revenue growth in the upcoming year. With a tantalizing dividend yield of 8.76%, Octopus Renewables Infrastructure Trust presents an alluring opportunity despite the lingering risk of prolonged interest rate increases.
Diversified infrastructure exposure:
- HICL Infrastructure, listed on the London Stock Exchange under the ticker symbol “HICL,” offers investors exposure to a diversified portfolio encompassing essential public and private infrastructure assets like hospitals, schools, and transport networks. The company secures revenue through long-term contracts with government entities, local authorities, or private operators, ensuring steady cash flow for dividend distribution, resulting in a current yield of nearly 7%.
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Despite a 14% decline in share price over the past year reflecting a drop in asset valuations, HICL Infrastructure’s diversified portfolio remains an attractive feature. The broad exposure to various projects and clients safeguards against unforeseen market events in specific sectors, mitigating risks for investors. While short-term concerns persist regarding the correlation between share price and net asset value, the resilience of the company’s portfolio inspires confidence among investors.
In conclusion, both Octopus Renewables Infrastructure Trust and HICL Infrastructure present compelling opportunities for dividend investors looking to bolster their portfolios with stable income stocks. With resilient dividend cover, attractive yields, and diversified exposure, these infrastructure companies remain appealing options for the discerning investor.
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