National Grid Share Discussion Threads

[gutterhead] 02/6/2014 22:04

I think the div is already priced in?

[keelstow] 02/6/2014 21:06

could break 900p tomorrow but will go ex-div 28p lighter on weds!

[gutterhead] 02/6/2014 20:44

Will be good to break and hold above 900p. This is a great income share with the share price catching up. Gla

[skinny] 02/6/2014 14:30

A new high @896 earlier.

[1carus] 29/5/2014 19:53

This is becoming one of my favourite shares. Like me, I think people are looking more and more for a steady return, which will probably help this share price to well over £9.00. Yep, profit taking will add in the occasion drop, and like someone else recently pointed out, these give good opportunities to buy.
Feels safer than bricks and mortar to me!

[sco77harris] 29/5/2014 12:34

I wonder if this can break 9 pounds before ex div

[bountyhunter] 20/5/2014 16:44

27.54p XD 4jun

[newbank] 20/5/2014 12:59

Bit of profit taking occuring, hence the slight drop.

[skinny] 20/5/2014 07:29

RBC Capital Markets Outperform 889.50 889.50 900.00 925.00 Reiterates

[skinny] 19/5/2014 09:08

The 2010 Rights Issue was one of the most profitable I've ever taken up.

[sco77harris] 19/5/2014 09:05

Prospect of negative savings rates in Europe will push this higher.

[norry2] 17/5/2014 15:26

Yes but they are often in prime city centre locations.

[septimus quaid] 17/5/2014 15:22

Before everyone gets carried away with the "land bank" a lot of it is contaminated former gasworks which will require expensive remediation measures before sale or to be given away.

[spacecake] 17/5/2014 13:05

The land bank was questioned in the results presentation, very large land owner, maybe 3rd or 4th in the country. As land prices recover interest in flogging some off seems to come up. I wonder if they have some in "the desolate north" with fracking rights !

[1carus] 16/5/2014 17:48

Thanks for the above feedback. It seems a fairly safe haven for now.

[sco77harris] 16/5/2014 16:31

I read they are looking at selling their 500mln property portfolio.

[sco77harris] 16/5/2014 15:16

Barclays lifted their price target on shares of National Grid plc (LON:NG) from GBX 875 ($14.74) to GBX 885 ($14.91) in a research report issued to clients and investors on Friday, Analyst Ratings News reports. The firm currently has an "overweight" rating on the stock. Barclays' target price suggests a potential upside of 2.49% from the company's current price.

[unastubbs] 16/5/2014 14:05

Questor - hold

[utyinv] 15/5/2014 23:10

1carus,

Over time this stock will increase in value especially when you realise the Cap expenditure being spent on new connections and building a more robust and up to date system. Rough guess: if NG are to spend £25 Billion over the next five years (NG are good at making £1 of asset return £1+)and the approx. current market value of NG is £8.62 x 3.7 billion shares in circ = £31 Billion. Then lets say current assets depreciate by 25% over the next five years this would leave a system worth £30Bill x 75% = £22Bill + £25 Bill of new build = £47 Bill and with 3.7 Bill shares in Circ IMHO I can see the share price in 5 Years being £12.70p / share.

Working on the understanding that the divi will rise by RPI / Year for the next 5 years (and working on an estimated RPI of 3% / year), I can see a full year divi in 5 years' time being 49p – 50p / share. Just guess work now as any future takeover could upset the applecart.

[lord gnome] 15/5/2014 21:04

I think you have it spot on Icarus. A safe stock to hold which won't give you any sleepless nights. It throws up the odd trading opportunity, such as the dive from 850 all the way down to 720 in the middle of last year, but other than that it currently looks to be one way traffic (famous last words).

[1carus] 15/5/2014 19:28

I'm kinda new to NG and bought a small amount of shares at the end of March, mainly attracted by the dividend. The share price seems to have risen fairly steeply for some time, which probably isn't sustainable, but what I am wondering is what is the general consensus on here in terms of total return over time. I agree with much of the above posts referring to this as a government gilt etc, it certainly looks that way. Assuming the divided is 4% and it seems that a 4% rise in share value is pretty much guaranteed for a number of years, this looks like a safe 8% for me for the foreseeable future with very limited risk - or am I missing something?

[gj2] 15/5/2014 19:26

I believe that a possible reason for holding the interim dividend earlier this year was the move from a fixed % rise (8% over 5 years, then 4(?)% in the run up to the RIIO price review)to rises linked to RPI. If they had assumed X% annaul RPI when deciding the interim payout, and the inflation rate at the end of the year was X-2%, they would have to raise the final by a far lower % than the interim. It is always better to raise the interim less than the final when the outcome/promise for the whole year is unknown. Presumably this is the idea behind (generally) having much smaller interim dividends than finals ?

[lord gnome] 15/5/2014 17:43

Newbank, whichever way you cut the numbers, over time the dividend will increase by RPI.

[newbank] 15/5/2014 15:28

Pierre,

I notice that NG are doing the accountants trick.

With full year divi being 42.03p, NG stated that come next Nov they anticipate announcing an Interim divi for Jan '15 of 35% of the previous years Full Divi, ie 42.03 x .35 = 14.71p. Now NG have stated that Divi's will be paid based on RPI but the last Interim was 14.49p which equates to an increase of only 1.5% (RPI being on Ave 2.5%).

However, I expect that NG will make next years Final Divi in Aug '15 higher ie, 42.03 x 1.025 (assuming RPI is 2.5%) = 43.08p - 14.71p (anticipated interim Divi) = 28.37p. Nice when the final divi is paid next year but this can be construded as NG withholding divi's for as long as practicably possible whilst still maintaining it's pledge to increase Divi's by RPI.

As I said nice accountants trick whilst the PR men say NG are increasing divi's by RPI

[lord gnome] 15/5/2014 14:09

Exactly Pierre. Why buy government stocks when you can buy NG.?