Octopus Renewables Infrastructure Trust Offers 10% Dividend Yield Amid Share Price Dip

The popularity of passive income among investors continues to grow, especially as interest rates may rise later this year. One way to generate returns is through dividend shares, which offer an alternative to traditional investments.

Octopus Renewables Infrastructure Trust (LSE:ORIT) is one such stock that boasts a 10% dividend yield, making it an attractive option for investors seeking high-yield dividends. Despite its share price falling by 7% in the past year, the company's underlying business remains strong.

The trust invests in renewable energy infrastructure, primarily solar and wind farms across the UK and continental Europe. The assets owned generate electricity, which can be used to produce cash flows. The recent review of onshore wind assets reduced expected long-term generation by around 10%, impacting the portfolio's net asset value (NAV). However, this discount has made the dividend yield more attractive.

The company's dividend payout looks secure, with management targeting a payment of 6.23p per share for the current year, up from last year's 6.17p. Around 86% of expected revenue for the next two years is fixed, providing useful visibility over cash flows. Additionally, 43% of forecast revenues over the following decade are inflation-linked, offering protection against inflation.

With a £10,000 investment, the potential annual passive income could be £1,000. This makes Octopus Renewables Infrastructure Trust an option worth considering for investors seeking high-yield dividends.