Having read the news from NESF today:

 Twelfth Dividend Target

NextEnergy Solar Fund, a leading specialist investor in solar energy and energy storage, is pleased to announce the Board has approved a maintained dividend target of 8.43p per Ordinary Share for the financial year ending 31 March 2026.

The Board believes that this maintained dividend target appropriately balances the interests of the Company’s shareholders and other stakeholders with the Company’s available uses of capital. The Company’s dividend target offers an attractive c.12% dividend yield which is fully covered, representing one of the largest dividend yields in the FTSE 350 based on the Company’s closing share price on 14 May 2025.

The dividend target is forecast to be covered in a range of 1.1x – 1.3x by earnings post-debt amortisation, supported by a high degree of visibility of the Company’s revenues.  As of 15 May 2025, the Company’s forecasted total revenues for the year ending 31 March 2026 are 94% fixed through its RPI-linked government-backed subsidies and the Company’s active power hedging strategy.

 Irradiance across the period has been lower than we have seen in recent years, however, pleasingly the months that follow this quarter have benefited from excellent weather and we look forward to this being reflected in portfolio numbers in future updates. 

Having done your own research, you can only own trust the management until they are proved wrong, it could be market forces outside their control or they may have been too optimistic with their fcast

You may want to buy the yield but are still nervous because the yield is above the market average, so you could pair trade with a lower yielding Gilt or U$ Treasury, both are risk free if held until maturity.

If you had 10k to invest.

5k in NESF would provide yield of around 12%

5k in a government gilt, held withing a tax free wrapper.

A blended yield of 16%, so a yield 8% a year to re-invest back into your Snowball.