National Grid Share Discussion Threads

[warranty] 30/6/2017 17:04

Absolutely zero chance of Corbyn and McDonnell ever being elected however much the young voters rally round him. The Tories may have been caught out last time but they won't make the same mistake again and there will certainly be no election for some considerable time as it's not in the interests of either Tories or the DUP. Both will be careful not to give too much away and undermine their positions so have no worries there. Things will turn as the Tories stabilise things and we will see what a bargain NG. shares are at the moment and possibly even cheaper. As for Labour, they will soon self destruct when their current halcyon days are over.

[utyinv] 30/6/2017 16:56

I see that the Yanks have followed this down since opening in the US then when London closes the ADRs in NY starts climbing again.

[utyinv] 30/6/2017 10:59

adejuk,

Let's hope not! I wouldn't be concerned normally as when the divi is paid if wanting to reinvest you will be getting a good deal. However, if momentum continues, with the anarchists who appear to be giving Corbyn lots of support, and if there is a GE in the uncertain future then holding NG might not be great. Not so concerned about Corbyn as MacDonnell as he has been on the TV and quoted in the papers as being proud for being a Marxist. He wants a complete redistribution of wealth and believes in a revolutionary approach to ensure his vision comes to fruition. Corbyn, Abbott and MacDonnell are dangerous and threaten any prospect of those who have worked hard and been prudent by doing the right thing, having a comfortable retirement and not to be beholding to the State.

[adejuk] 30/6/2017 10:01

could this test £9?

[utyinv] 30/6/2017 08:39

Looks like Deutsche Bank has achieved its target.

No logic for NG to be so cheap!

[prewar] 29/6/2017 20:46

Very long term holder, some from £3.50, some from £8.35 just under two years ago, might buy some more soon. Over exposed to NG but think good long term bet.

I wouldn't classify myself as an extreme leftie, just trying to remind you that the 70's were a long time ago, lots of things have changed since then. People harping back to the three day week IMO only do so to fit a political argument, it's as relevant as saying all Tories are tangerine munching stocking wearing oddballs like Stephen Milligan.

I'm also intrigued - what policies outlined recently by Macdonell and Corbyn would you classify as Marxist?

[utyinv] 29/6/2017 20:29

LOL its obvious you are an extreme Leftie with the comment 'shame we've not had a Labour government since the 70's'. In other words you're probably of the opinion Blair wasn't Labour or Left Wing enough because Labour in your eyes should follow Marxism like MacDonnell and Corbyn??

I am intrigued though, unless you are just a gambler who trades CFD's and don't hold stock long term. Because if you do hold stock aren't you a Turkey voting for Christmas?

Isn't this a bb for NG shareholders?

Nice communicating with you, however as I am now of the opinion you aren't a Long Term holder of NG stock, there is little to discuss further. :)

[prewar] 29/6/2017 19:02

Lol Uty who can forget Labour selling off the family silver (Royal Mail, Gas and Electricity Boards) at ridiculously low prices, Black Wednesday and doubling the nations debt in 7 years?

I guess depends how much you take the Right-wing press as factual:

£9 living wage and Energy Mkt intervention - Tory good idea
£10 min wage and Energy Price Capping - Labour Bad idea!

Shame we've not had a Labour government since the 70's for you to have a more recent, meaningful comparison.

[mj19] 29/6/2017 17:51

The one dividend stock I'd sell to buy Lloyds Banking Group plcRupert Hargreaves | Friday, 9th June, 2017 | More on: LLOY NG License: CC0 Public DomainLloyds (LSE: LLOY) has quickly worked its way into the ranks of the FTSE 100's top dividend stocks over the past few years. As the bank's recovery has reached its conclusion, Lloyds has returned to its income routes, vowing to pay the majority of the income generated from operations back to investors as long as its capital buffer remains adequate.Based on management projections, City analysts believe the bank will return a total of 3.95p to shareholders this year and then 4.5p to shareholders during 2018. At the current share price, these cash return figures are equal to a dividend yield of 5.7% for 2017 and 6.5% for 2018. Dividend payouts are covered approximately twice by projected earnings per share.A better buyLloyds' near-term dividend schedule, coupled with its dividend growth potential, leads me to believe that the bank is one of the best dividend stocks in the FTSE 100 today and stands head and shoulders above leading income stock National Grid (LSE: NG).National Grid is one of the FTSE 100's most defensive companies, and it's unlikely that the company will be thrown off its pedestal any time soon.As the primary operator of the UK's electricity infrastructure, it's highly unlikely National Grid will ever be replaced or face serious competition in its markets. Therefore, profits and dividends are virtually guaranteed. However, the one downside of National Grid's defensive nature is that the business is highly regulated and profits growth is sluggish.Over the past five years, earnings per share have hardly budged. And while analysts are expecting earnings per share growth of 13% for the year to 31 March 2018, even if the company hits this target, it will have only achieved total earnings growth of 11% in six years. Nonetheless, even though earnings growth has been non-existent, management has increased the company's dividend payout by around 10% over the same period. As a result dividend cover has fallen from 1.4 times to 1.3 times and scope for further growth is limited.Shares in National Grid currently support a dividend yield of 4.4% and trade at a P/E multiple of 16.4. The company looks expensive on both of these metrics compared to Lloyds, which currently trades at a forward P/E of 9.3. Further, as noted above there is more scope for dividend growth with Lloyds, and depending on economic growth, there may be more scope for earnings growth at the bank.

[ianood] 29/6/2017 15:14

Uty - that's exactly what drove me away from a core holding immediately before the last election. You would never get looked after well as a shareholder by McDonnell & Co

[prewar] 29/6/2017 15:08

Uty, re-nationalisation of NG and reduction in share price surely a price worth paying for the greater good.

When were UK Govt bonds last rated as junk?

[utyinv] 29/6/2017 13:29

Just another point:

Not intending to be cynical but it is feasible that Institutions are off-loading not only because the next big divi to be got at is Aug '18 but also because there may be another GE within the year and if the unthinkable happens in that Labour wins, NG will be re-nationalised.

Even the Labour party have Hedge Fund Managers (Martin Taylor), that are supporters of the Party and they will do anything to try and drive the price down making it easier for Marxist MacDonnell to take over NG by commandeering undervalued shares in exchange for Gov Bonds (which in turn will be regarded as Junk Bonds in the market).

Fascinating as it may be; there is also a report on Sky that Venezuala is on the brink of total collapse similar to Germany before the WWII despite being one of the big Oil producing Countries. The Venezuelan Leader has adopted a similar policy to what Corbyn has professed he wants for the UK.

[utyinv] 29/6/2017 12:54

ringer12,

In answer to your question Yes and NO :)

Yes, in theory with less shares in circulation the Company will be paying out less in dividends if the divi being paid was on the same basis as before the consolidation, i.e. £X billions / 3.71 billion shares.

No, if the money generated to be distributed amongst the reduced shares in circulation is distributed on the same fundamentals i.e. £Y billions / 3.4 billion shares.

The distinction between £X Billions v £Ybillions is that £X billions would have been more than £Y Billions because don't forget we have sold 61% of the gas Distn business so we should be getting that amount less in profits to distribute to shareholders. However, the reduction in shares in circulation plus the buy back should cancel each other out.

As I have said though if you look at the figures in the company accounts to see what profits vs the costs are for the Gas Distn business you will see that the gas Distn business is costly (very Labour intensive), capital and operating expenditure being high together with a continued pressure from the regulator that is restricting how much profit NG can make because it (Ofgem)believes NG should be a charity and give its service for free(tongue in cheek comment, sorry).

So with the strategy to concentrate time and money on more lucrative aspects of the business, in an area where there is less regulatory pressure, in time the dividends should start to increase pleasingly, IF, the plan works!

In any way, logically in a normal market the share price should be rising.

One of the downsides with National Grid at this moment in time is we are still in June. The divi paid in Aug has already gone ex-divi, so there is no reason to keep your money invested in NG until Late November early Dec when the shares go ex-divi for the Interim payment in Jan '18. and then that is only 35% of the yearly divi on current policy. So in essence you have to wait almost another year to get some meaningful dividend (Divi in Aug '18 which goes ex-divi in June '18)i.e. its a long time to wait in having your money tied up.

So its times like this that the 'Board' need to be on tope of their game. Create some reason why people should remain invested. Tricks used by other companies include; creating rumours that the Company might want to sell another part of the business, or a rumour in a take-over or how well things are going over in the USA (where regulation is not as stringent as it is over here), or as I have advocated in the past, have four equal quarterly dividend payments, or / and quickly investigate and hopefully quash any suggestion of liability where there is a suspicion of a claim as a result of when things go wrong. Any of those points mentioned have helped other Companies in the past in alleviating the volatility in share price.

[ringer12] 29/6/2017 10:49

UTyINV. Doesn't the fact that that ahareholders holdings have been reduced also mean that NG have to pay out less in ordinary dividends including the final at present ex divi.

What with one thing and another we appear to be going from bad to worse. with a special divi, sale of part of the company, and share buybacks all supposed to be in shareholders inerests!

[skinny] 29/6/2017 09:54

Yes 5 times this month - albeit they raised their TP from 920 to 950p.

[utyinv] 29/6/2017 09:52

Deutsche Bank has really got a downer on NG re-iterating a Sell recommendation three times in nearly a week.

Wouldn't it be sweet justice if NG went to £12 and Deutsche went into administration and the GBP rose to be £1 = €2! Wishful thinking!

[utyinv] 29/6/2017 09:00

This is oversold!

Equiv to price before consolidation, share buy back and special divi:-

Current Price £9.66 / 12 x 11 = £8.855 + £0.84375 = £9.69

Discounting the share buy back; which should be pushing up the share price

However, I note that unlike other Companies share buy backs the shares are being held in Treasury as apposed to being Cancelled down. When shares are held in Treasury by the Company it is used to fund Directors Bonuses (Bonuses in major are paid in shares) and to cater for scrip issues in lieu of Divi payments.

So this is not benefiting shareholders now! To pay Bonuses or to issue shares in Lieu of cash should be taken out of future profits. i.e., when the Company declares results it tells us how much profit it has made say £xBillions. Because its a Utility regulated by OFGEM (OFGEM is happy for gearing to be higher than a normal Company and thus circ 70% of net profits should be returned to shareholders), so 70% of £X billions are to be distributed to shareholders.

But if the shares held in Treasury are being used for bonuses and Scrip issues in lieu of Divi cash, then the company is keeping more cash that should really be returned to ordinary shareholders.

Why should bonuses be paid to Directors if the main Targets on the Company's Directors Performance Ex criteria is to grow the share price?

Bonuses are supposed to be paid for achieving and exceeding your agreed objectives. When you have failed to deliver, bonuses are usually held back.

[utyinv] 28/6/2017 13:54

We still own 39% of Cadent!

[utyinv] 28/6/2017 13:49

Sh.t! Just when I decided to reinvest some of the Special Divi!

[skinny] 28/6/2017 13:29

"The works were originally undertaken by the National Grid’s gas distribution arm following a leak. In March, the firm was sold to investors, including the Qatari government, and renamed Cadent Gas.

Cadent said the “work was still ongoing to box in the lateral pipes [horizontal pipes to flats]” when the fire occurred."

[redartbmud] 28/6/2017 12:11

Oh dear, that doesn't sound too good.

[m100] 28/6/2017 11:44

Out in the public domain now.

Grenfell Tower gas pipes left exposed, despite fire safety expert's orders

[skinny] 28/6/2017 09:34

To buy back the number of shares 'lost' is just about worth it at the current share price

[f880gna] 27/6/2017 18:17

Theresa May is the one with the classic Soviet economic interventionist policy of capping energy prices. Not to mention her generally Stalinist election campaign, much good did it do her.