The yields of the Renewable Energy Infrastructure and Infrastructure investment trust sectors are near all-time highs according to data from the Association of Investment Companies (AIC).
The average yield of the Renewable Energy sector is 10%, spiking to 10.6% on 7 April 2025 an all-time high, whereas the average yield of the Infrastructure investment trust sector is 6.4%, spiking to a record 6.8% on 7 April 2025.
“The recent tariff sell-off has led to yields in the Infrastructure and Renewable Energy Infrastructure sectors ballooning to all-time highs,” says Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC). “The discount, which reflects sentiment towards these sectors, is historically wide at 21% for Infrastructure and 33% for Renewable Energy Infrastructure. Performance of both these sectors has suffered in the last three years as rising interest rates and cost disclosure issues have taken their toll.
“However, analysts believe the pessimistic view of these infrastructure sectors is overdone and there’s reason for optimism. The infrastructure dividend yields are some of the highest on the UK market, offering resilient income in an uncertain world. There has been some corporate activity within the sector and there are predictions of more to come. Boards are acting proactively for their shareholders, undertaking more share buybacks and realising assets. The market has priced in interest rate cuts which would benefit these investment trusts.
“Of course, it’s vital that investors do their homework and thoroughly research these investment trust options. If investors are in any doubt, they should speak to a financial adviser.”
Renewable Energy Infrastructure sector
For historical context, the Renewable Energy Infrastructure sector had a yield of 9.1% at the end of December 2024, 6.8% at the end of December 2023 and 5.4% at the end of December 2022.
Renewable Energy Infrastructure sector performance, yields and discounts
Source: theaic.co.uk / Morningstar. Share price total return, yield and discount data to 14 April 2025. A hyphen (-) denotes no performance data. Table excludes investment trusts where a wind-up, merger or acquisition has been proposed.
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