National Grid Share Discussion Threads

[anhar] 20/10/2023 16:27

...RIO looks like a good recovery play and has a strong dividend growth history ...until this year ...when it has been cut as well as no special of course so doesn't quite fit the bill...

I've held big miners RIO and BHP in my income port for many years. Spectacular long term divi returns on average, including two valueable demergers from BHP, but as you suggest they are not progressive divi payers. Instead, their divis are a function of profits and the latter are highly variable due to fluctuating commodity prices. So not for those seeking steady payout rises year on year.

Despite that, I am though happy to hold forever and regard this sector as core in my port. I can live with the divi flucs because my belief is that the long term average payouts wil continue to be good. No guarantees of course.

[gbh2] 20/10/2023 13:58

imo the threat of Nationalisation will be a concern.

[bountyhunter] 20/10/2023 13:52

Fwiw Sunak can't win imho. For the Tories to stand any chance they need yet another leadership election to democratically elect a new leader but I guess that won't happen?!
Dangerous territory I know so please take my political thoughts with a pinch of salt!

[bountyhunter] 20/10/2023 13:47

Yes I agree. That needs to be taken into account. ...but what does that leave, savings certificates?

What shares should do well under labour if any, anyone?

Presumably those with significant foreign earnings like NG.?!

[gbh2] 20/10/2023 13:45

Market pricing in a Labour win!

[bountyhunter] 20/10/2023 13:21

Hi Uty

Just checked AV. and while I agree with you re the takeover potential looking on div max the 16 yr div growth is wobbly and long term capital growth poor so I will start a second list for potential takeover targets. Adm is a similar share imho.

BAE looks very good for consistent dividend growth, although already the price has doubled over the last 2 years, have added that one.
PSN has an inconsistent long term dividend record but I agree it has good recovery potential and I already hold a few.
RIO looks like a good recovery play and has a strong dividend growth history ...until this year ...when it has been cut as well as no special of course so doesn't quite fit the bill. Maybe I need a 3rd list for recovery plays!

The reason why I am looking at this is that I'm fed up with seeing more risky shares especially AIM shares being decimated by the UK market and am looking to consolidate into safer dividend payers of which I already hold a number, but intend to increase.

[utyinv] 20/10/2023 13:08

Bounty,

On your lust along with LGen should be IMO Av (Aviva). Last week it was mentioned that they could be a take over target. That’s why it jumped 20p but since then the noise has quietened down due to no news / other news. That aside if the rumoured take over does take hold they are saying the share price could be £6.

Other good dividend stocks to consider IMO ( and please … it isn't a recommendation, so DYOR), are BAE, PSN ( buy low, good divi), RIO.

[bountyhunter] 20/10/2023 12:17

Adding RKT(previously highlighted by Skinny) and REL. Comments & suggestions welcome re long term div growth large caps ideally with a decent yield and capital growth, not asking much am I! 😎

[bountyhunter] 20/10/2023 11:59

ICP has a yield of 5.9% and 14 years of dividend growth history so I'm adding that one.

[bountyhunter] 20/10/2023 11:51

I like the look of IHG, the strong long term dividend growth pattern has resumed post pandemic (2022).
Results out today look good but the fickle UK market has marked IHG down so I will add it with a question mark as one to keep an eye on.

[bountyhunter] 20/10/2023 11:23

Thanks for the suggestion, I used to hold that one but sold due to increasing competition from Lidl and Aldi. Also looking at the dividend history over 15 years it is not one of consistent growth. I do hold a few SBRY as Bestway has been building a stake and imho SBRY could be the next large supermarket takeover target. Nai.

Agreed re UK stocks. Maybe I should add Microsoft to the list? The yield is low but the dividend growth history is superb.

[viscount1] 20/10/2023 11:05

The UK share that I hold that I consider to be most like NG is TSCO. Very powerful in its market, well-run, good yield, defensive but with growth options.

On the other hand, I would avoid most UK-centric stocks right now. The moron risk premium is alive and kicking.

[bountyhunter] 20/10/2023 10:58

Ok I have done that, so far NG., GRG, AZN, LGEN

[bountyhunter] 20/10/2023 10:52

Thanks and agreed, already hold that one :)
Maybe I will start a list at the end of the header.

[anhar] 20/10/2023 10:06

...Do you know of any others in that category, i.e. with long term dividend growth as well as a decent yield?

One current example from the FTSE100 is insurer Legal & General (LGEN) with a high yield around 9%.

[bountyhunter] 19/10/2023 22:41

This might help a little tomorrow?

[bountyhunter] 19/10/2023 14:56

Yes that's true, only 5 yrs with a gap in 2020, and I would assume that that combined with perceived political risk is why the yield is close to 10%. I'm surprised it's even listed on the FTSE 250, a bit of an odd ball, possibly not worth the risk.

So far I can only see that GRG is a decent potential match to NG re capital and dividend growth, although AZN is also fairly consistent over many years although with with a lower yield.

[skinny] 19/10/2023 14:17

Without looking deeper, BGEO doesn't seem to have much dividend history?

[bountyhunter] 19/10/2023 14:10

Uty has a point in that every day recently the NG price has dropped back in the afternoon..

[bountyhunter] 19/10/2023 14:02

Hi Skinny

Thanks, I've looked at those two and over 5 yrs GRG has been a high flier with RKT not performing so well taking capital growth and yield into account [edited].

Have you looked at BGEO? ...seems too good to be true so it probably is! It may be that the high yield is accounted for by perceived political risk.

[skinny] 19/10/2023 13:13

I'm not sure about the decent yield, but GRG & RKT for the long term dividend growth.

[bountyhunter] 19/10/2023 13:04

Yes that's true. Do you know of any others in that category, i.e. with long term dividend growth as well as a decent yield?

[anhar] 19/10/2023 12:20

For me as purely an income investor it's not just the decent yield that appeals, I've held for a long time and the divi growth has been decent too, in accordance with their policy.

[bountyhunter] 19/10/2023 11:55

At the top of the header, above News, I've added some links to the NG., SSE, FTSE and DOW labels.

[bountyhunter] 19/10/2023 11:40

Compared to the DOW (and the FTSE) indeces NG has certainly underperformed over the last 6 months, but it's the AIM market which has done the worst..


Over the last year however (excepting the dire AIM market apparent death spiral!) performance is comparable, although the NG gains over the summer have since been wiped out..


On the plus side, NG of course has a decent yield, albeit less than RPI/CPI right now but still beating short term savings rates.