National Grid Share Discussion Threads

[lovewinshatelosses] 03/10/2022 15:34

I think the bottom will be somewhere in the 8's, so quite close I think. I hope so anyway, because if that happens on no company-specific bad news, I will start buying back in :)

[gilesy911] 03/10/2022 08:30

Have we seen the bottom yet??

[bountyhunter] 02/10/2022 11:55

The longest timeframe for which Advfn charts allow me to compare shares with indeces is 10 years...

NG SSE vs FTSE-100 FTSE-350



Including dividends it would be a different picture of course since the NG and SSE dividends will have exceeded the index yields. Nevertheless over the 10 year timeframe NG has been the best performer even when dividends are not considered.

( 350 width ;)

[bountyhunter] 02/10/2022 11:53

Comparisons all depend on the timeframe; I've been playing around with Advfn chart comparisons of NG & SSE against the FTSE 100 and 350 indexes...

[bountyhunter] 01/10/2022 14:02

Yeah I could have made it bigger but that's blown the header display on my phone! ;-)

The pandemic drop got far more publicity of course than this year's drop due to the suddenness of it vs the drop over the course of this year. Listening to many politicians you would think that we are all raking it in daring to invest in the markets, but they should have a look at the above chart to see the true picture! The FTSE 250 was higher in early 2015 than it is now, dividends excluded, which is where a good dividend payer comes in!

[skinny] 01/10/2022 13:24

bountyhunter - your chart with the years a bit more readable.

[lippy4] 01/10/2022 11:36

surprised it has fallen so far..

[bountyhunter] 01/10/2022 11:10

The drop in the wider market is becoming quite significant now. even comparable in scale to the drop at the start of the pandemic..

[saltraider] 30/9/2022 19:08

... only 20% ... be grateful, so much has fallen so much more.

Paper losses mean nothing at all, as long as you are confident about fundamentals and prepared to patiently hold. Dividends are cash in the bank. You can spend them on beer or other essentials.

[gbh2] 30/9/2022 17:22

Not much good when capital value is down 20%

[squintyflinty1] 30/9/2022 15:18

5.5% Dividend at this level.

[utyinv] 30/9/2022 12:52

Actually the US regulator gives NG a ROE of in excess of 9% that’s last years figures when inflation was 2% The US regulator is allowing NG to work on a level playing field, business wise, but the UK regulator think that NG is a glorified Charity

[goodnight1] 30/9/2022 12:43

UtyINV,

Yes I know that for all these companies in the utility space but the issue is that costs will be going up and there are various other risks with these businesses. NG is in America where the regulator is not so easy going.
The real issue is that the discount factor to discount earnings has just increased and will keep increasing until the Fed decides it has caused enough destruction.

So a dividend of 5% is similar to the Gilt but the risk is much lower on the Gilt.
I do like utilities but they might not be such a good investment at the moment with the financial and political risks increasing.

[utyinv] 30/9/2022 12:27

Goodnight1

Utilities are a special case in comparison to other stock. As mentioned numerous times, the revenue that NG can recoup from customers is set by Ofgem and both Ofgem and Government recognise thst capital expenditure has to be paid back. There is an Inflation figure factored into the calculation. Ofgem and Government encourage Utilities to go for higher gearing so that customers can pay what’s due over a 40 year payback period.

Also, NG’s dividend policy increases in line with CPIH which is currently approx 11%

[goodnight1] 30/9/2022 12:08

All these utility shares should go down further as the market seems now to be aware that you will soon get a gilt at over 5% with little risk.
So what is the advantage of buying NG when returns will be restricted and most of these companies will pay much more for debt eventually - so risk is increasing because of inflation.
The water companies should be at least 25% down from today as dividends there are lower and eps in most cases does not cover the dividend.

I do not find many of the utilities attractive although SSE might be at £15!

[grahamite2] 30/9/2022 08:54

It's looking very attractive now.

[tuftymatt] 30/9/2022 08:41

Yeah it's all gone very messy here 😩

[gbh2] 30/9/2022 08:39

This has turned into a basket case!

[gbh2] 29/9/2022 16:38

We allow it to happen so where does the blame rest.

[utyinv] 29/9/2022 16:00

Shorting UK stock. Look what happened at 14:30 UK time 09:30am New York.

Look at the number of ADRs being shorted.

[utyinv] 29/9/2022 15:00

Yanks at it again

[utyinv] 29/9/2022 15:00

Yanks at it again

[utyinv] 29/9/2022 15:00

Yanks at it again