One in every of my favorite investing duties is holding monitor of the passive revenue generated by my dividend share portfolio.

The corporate I’m writing about at present options extra usually than common in my data as a result of it pays dividends quarterly. Most UK shares solely pay out twice a 12 months.

FTSE 250 member Renewables Infrastructure Group (LSE: TRIG) invests in wind and photo voltaic farms across the UK and in Europe.

I purchased shares in Renewables Infrastructure earlier this 12 months, tempted by the 8% dividend yield and dependable long-term report.

A renewable revenue?

TRIG, because it’s recognized, floated on the London Inventory Change in 2013. This makes it one of many oldest renewable power funding trusts on the UK market. Previous efficiency is not any assure of future returns, however I’m inspired by TRIG’s report of delivering on its targets during the last decade.

One explicit attraction for me is that the dividend has by no means been lower. The payout has grown from 5.5p per share in 2014 to an anticipated degree of seven.5p per share for 2024.

That’s equal to an annualised development price of three.2% per 12 months, roughly in keeping with inflation over the identical interval.

Reassuringly, TRIG’s newest replace confirmed that the dividend must be lined by money circulation this 12 months.

As well as, the belief has been utilizing surplus money to repay a few of its debt. This could scale back the danger of a future dividend lower, in my opinion.

Why have TRIG shares been falling?

I’m constructive in regards to the funding case. However the shares have fallen by almost 20% this 12 months.

One cause for that is the continued influence of upper rates of interest, which aren’t falling as shortly as anticipated.

One other downside is that electrical energy costs within the UK have additionally been falling. Whereas plenty of TRIG’s income relies on mounted costs, a few of it’s uncovered to market pricing.

Lastly, power manufacturing from a few of TRIG’s wind farms has been disrupted by upkeep and restore delays this 12 months.

I believe these issues will progressively ease over time. However I can’t ignore the danger that they may additionally worsen.

On account of this dump, TRIG shares are presently buying and selling at a 25% low cost to their last-reported ebook worth of 121.6p per share (30 Sept 2024).

I reckon that’s too low cost. I count on the share price to get better, over time.

I’m not alone, both. Minesh Shah is a managing director on the funding firm overseeing TRIG’s investments. On Thursday 14 November, he spent £60,000 shopping for TRIG shares.

Shopping for for passive revenue

TRIG’s actual dividend goal for 2024 is 7.47p per share.

To hit my goal of £200 a month, I would wish to purchase 32,128 shares.

That will value about £29,300, based mostly on the 91p share price on the time of writing.

My place is a bit smaller than this in the meanwhile. But when I’ve extra spare money, I’ll add to my holding over the approaching months.