[adrotate group="2"]
SHOCKING DIVIDEND ALERT: Are You Missing Out on Crazy Cash Returns?
Double-Digit Dividends! Where’s Your Cash Flow?
Listen up, savvy investors! A handful of FTSE 250 shares are tossing out mind-boggling yields above 10%—and you might be left slamming your fist against the wall for not jumping in!
Right now, the Bluefield Solar Income Fund is doling out a jaw-dropping 10.2% yield. Meanwhile, the Foresight Solar Fund isn’t far behind with an exciting 10.1% yield.
Why Aren’t You Cashing In?
You heard it here first: If you don’t own any solar funds, you’re not just missing out—you’re making a grave mistake! Sure, I have one high-yield darling, but sadly, Foresight isn’t in my arsenal.
What’s the scoop? For the last several years, Foresight has been cranking up its dividend payments annually, doling them out quarterly. That’s a tantalizing prospect for anyone seeking sweet passive income!
But Hold Up! What’s Happening with Capital Growth?
Buckle up, because the story takes a wild twist! Over the past five years, the Foresight Solar Fund’s share price has plunged by an astonishing 25%. Yes, you read that right—25% down the drain!
What’s the Deal with a 25% Discount?
Why on Earth is this fund trading at a staggering 25% discount to its net asset value? If shareholders wanted, they could band together, sell off assets, and reclaim a whole lot more than what those shares are selling for now.
But don’t hold your breath; unloading a company’s assets isn’t as simple as it sounds! Predicting that they’ll fetch the same amount as stated in financial reports is like chasing rainbows.
That massive discount and the persistent slide in share price, even while dividends grow, scream RED FLAG! Investors are clearly peering past those tantalizing dividends, searching for promising long-term prospects.
A Sector on the Brink of Change!
Foresight management is no fool—they’re keenly aware of these issues and have started pondering on ways to explain why solar funds are trading below their net asset value. They’re hinting at possible mergers and acquisitions that could shake things up—potentially unlocking hidden treasures!
But be warned: lowball buyouts could obliterate value for many shareholders—something I’m painfully experiencing with my own investment in Treatt.
I Can’t Stand the Uncertainty!
Foresight has been actively buying back its own shares, and doing it at a price way below net asset value could spell good news for investors. But the more pressing question looms: do solar funds like Bluefield and Foresight even have a solid business model? The volatile energy market and unpredictable weather are ticking time bombs!
With Foresight Solar Income Fund set to unveil its interim results soon, all eyes are on management to unveil their game plan for the sector.
But frankly, I’m not thrilled about the uncertainty surrounding the business model when these FTSE 250 shares are sitting at such hefty discounts to their net asset value (Bluefield trades at a 26% discount!). So, count me out—I won’t be investing in either!
[adrotate group="2"]