The trust said that, due to positive prospects, a strong balance sheet and cash flow generation, it will increase its annual dividend by 14.2% to 10p per share.
The board also decided to pay a 3.34p per share dividend for the last quarter of 2023, bringing the full year dividend target to 10p per share.
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Additionally, the trust acknowledged its current discount to NAV, and the board has initiated a £100m share buyback programme to provide "greater flexibility to achieve an optimal use of cash to deliver value for shareholders".
The scheme will commence "shortly", the board said, and will end by 25 October 2024, at the latest. This will fall under the authority granted by shareholders to allow the trust to buy back up to 14.99% of its issued share capital.
Greencoat is also entering in a non-discretionary agreement with RBC Europe and Jefferies International, which will carry out the buyback programme, the board added.
According to data from the Association of Investment Companies, UKW is currently trading at a 21.7% discount.
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Lucinda Riches, chair of Greencoat UK Wind, said: "Since listing in 2013, UKW has established a strong track record of delivering significant shareholder value, having paid £887m of dividends to date and reinvested £877m of excess cash generation.
"Reflecting our market leading position, as well as the company's strong prospects, balance sheet and cash flow generation, I am pleased to announce an increase in the annual dividend target by over 14% to 10p per share for the 2024 financial year and an increase in the 2023 dividend target to 10p, as well as the launch of a share buyback programme of up to £100m, to the benefit of our shareholders."