3 income shares with yields above 10% to consider for October

With interest rates likely to rise in the UK before the end of the year, it’s logical that people are thinking about where it’s best to put their money to benefit from higher interest. The stock market, via income shares, can offer an attractive option to consider as well, with some stocks yielding over 10% right now.

Here are a few that are on my radar for October.

A retail investor favourite

First up is the Octopus Renewables Infrastructure Trust (LSE:ORIT) with a dividend yield of 10.16%. The share price is flat over the past year, but looks attractive to me as an income stock, particularly given its chunky dividend yield.

The trust’s targeting a 6.23p dividend for 2026. Importantly, this isn’t simply being funded from reserves. Portfolio cash flows covered the dividend 1.38 times in the first half, while revenue and EBITDA came in ahead of Autumn Budget.

I also like the visibility of its income. Around 86% of portfolio revenues are fixed over the next two years, while 42% of revenues over the coming decade are inflation-linked. The longer-term outlook looks encouraging too. ORIT is targeting 9%-11% annualised total returns under its 2030 strategy plan. This is supported by renewable energy investment, asset recycling and portfolio growth.

There are risks. Higher interest rates can depress renewable infrastructure valuations, while power prices, weather conditions and project performance can affect returns.

Focuing more on solar

Another idea is the Foresight Solar Fund. It has a dividend yield of 11.77%, with the stock down 9% in the last year. In a similar way to Octopus, management expects the dividend this year to be covered around 1.1 times underlying operating cash flow, assuming production and costs remain on track. Interestingly, it has a strong track record, and has also met every target dividend since its 2013 IPO.

Recently, operational capacity has increased, while an enhancement programme across nine sites could add up to £2.5m of annual revenue once completed. One concern I have is any potential regulatory changes as solar is heavily governed.

The highest-yielding choice

A final option is the Gore Street Energy Storage Fund. This has the highest-yielding option here at 12.1%, but it’s also the worst-performing option over the past year of the three, with the stock down 15%.

Some of this move lower reflects the concern that battery-storage markets have become increasingly competitive as more capacity has connected to grids. Yet the lower stock price has helped to lift the yield.

The latest quarter showed revenue up 38% year on year to £9.77m. At the same time, two asset sales have been completed, and Gore Street is extending two UK batteries from one-hour to two-hour duration to increase their earning potential. I don’t see the dividend as being under any immediate threat, so even though it’s a higher-risk option, the yield is certainly lucrative!

On balance, Octopus is my favourite stock to consider when I weigh up the risk versus potential income reward. Yet investors may want to consider the other options as well, given the double-digit yields.

Should you invest £5,000 in Octopus Renewables Infrastructure Trust Plc right now?

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Jon Smith has no positions in the shares mentioned.