NextEnergy Solar Fund
NESF.L (LSE)
NextEnergy Solar Fund, recognized as a top pick for 2026, offers a noteworthy dividend yield of 15.16%. However, it has faced challenges, reflected in a 1-year return of -24.35% and a 5-year return of -52.42%, influenced by declining power price forecasts and broader macroeconomic factors. With a consensus rating of "Neutral" from analysts, investors should weigh the potential for recovery against current valuation concerns.
Pros:
- High dividend yield
- Focus on renewable energy
Cons:
- Negative returns over the past year
- Market volatility risk
NextEnergy Solar Fund (NESF.L) may appeal to income-focused investors seeking high dividend yields, particularly those with a tolerance for risk given its recent performance challenges. However, potential investors should carefully consider the fund's significant negative returns over the past year and five years, alongside broader market conditions, before making investment decisions.