National Grid Share Discussion Threads

[utyinv] 30/5/2024 12:09

Zicopete post 9355

Existing shareholders get the opportunity to buy cheap. Why not new shareholders?

Does that really warrant an answer?

For those that might think it does:- because existing shareholders are having their holding diluted and hence, the value of that holding. Also, existing shareholders own the Company or theoretically they do.

[berny3] 30/5/2024 12:05

well put my last buy order in and looks like it was too low, unless we get an another tick down on US open. Seems a bargain to me at these prices.

[pander45] 30/5/2024 12:00

Anything sub 800 is a solid investment imho.

[garycook] 30/5/2024 11:57

You could get 750/760p.But IMHO not as low as 700p.But you never know in this Market !

[zicopele] 30/5/2024 11:54

Yiield has to increase for risk of more capital requirement I am in at 700p if it goes that low.

Cant see why not. Existing shareholders get the opportunity to buy cheap. Why not new shareholders?

[utyinv] 30/5/2024 11:12

Viscount:

The way they work it out is market cap at the time was £41.5 billion with 3.65 billion shares in circ gives a share price of £11.36 ish.

After £7 billion of fresh cash raised, theoretically the market cap would be 41.5+7= £48.5 billion.

But there will be 4.71 shares in circ so the theoretical new price will be £10.29 ish. Slight differences in price due to rounding up

[prokartace] 30/5/2024 10:47

ok tks for clearing that up anhar

[anhar] 30/5/2024 10:41

The predicted divi for 25 will be 45.3p as stated by NG.. Therefore as I said 906p gives a 5.0% yield. You can forget about the rights for this calculation, these are the figures for the xr shares as now traded.

If you buy the xr before xd on 06 June you will also receive the next div of 39.12p, which is the final for 24. The npr are not entitled to this payment and this is taken into account in their pricing.

[prokartace] 30/5/2024 10:41

my calculation is that an adjusted div for 2025 would be 40.128 pence meaning we need to buy at 800p to get 5% yield. Feel free to correct me tks

[viscount1] 30/5/2024 10:28

As many will have noticed, the NG price history has been rebaselined.

This is not surprising, but I cannot work out the basis for the adjustment. The 22/5 closing price was 1127.5p, but the adjusted price from the LSE is now 1036.30. (E.g.:

That does not work out as either the straightforward diluted number nor the dividend-adjusted dilution, so where did it come from?

[laurence llewelyn binliner] 30/5/2024 10:25

#GaryCook, similar strategy, diversification.. :o)

BATS/IMPS very nice high yield keepers IMO, but it is not good PF management to get too over weight in any 1 security or sector..

[zicopele] 30/5/2024 10:18

Garycook...we have similar portfolios. I also havr ENOG, Altria, Kinder Morgan and PBR which been a remarkable dividend payer.

[prokartace] 30/5/2024 10:17

So the above 5% yield is not above 5% adjusted for rights in the future. Can anyone tell me how I can buy the rights and when must they be exercised by?

[pierre oreilly] 30/5/2024 09:53

9343, not yet. the next divi is raised from the previous, but after that it gets adjusted in the same ratio as shares in issue. The np rights and the shares from them don't qualify for the next divi, but existing shares still do.

[garycook] 30/5/2024 09:49

zicopele. Already own plenty of AV,BATS,HSBA,LGEN,MNG,and PHNX,all yelding a lot more than 5% .But need to balance my Port, with some NG to go with ABDN,BHP,BP,GLEN,GSK,PSN,RIO,SHEL,SSE,TW,and VOD ! anhar,You know what you are doing being an experienced investor. Everyone to their own strategy !

[colsmith] 30/5/2024 09:47

I'm not sure the fiscal benefit of the cash raise and the other apparent 60Bn is needed; assuming it is, will it be managed effectively. However, if NG tanks fiscally then the UK does - we all rely on its wires; the Government/Parliament aren't noted for practicality but this is in lights (so to speak) that this must not be allowed to flounder. From this perspective it should be a good bet for investment - equity or debt loan and the current share price drop is merely the market working to get the best return; but its seems irrational for the market to tank it after all their computer systems rely on it!

[prokartace] 30/5/2024 09:46

Has that Div been diluted to take into account the new shares?

[zicopele] 30/5/2024 09:44

Anhar...you bought too early. Plenty of time to get that yirld to 6 or 7%.

5% too low for a co.pany which has just clawed back all the dividends of the last ten years.

[anhar] 30/5/2024 09:41

A 10% yield on BATS or Phnx beats 5% on National Grid.

A pointless and obvious comment. Nobody is suggesting NG. yield is the highest in the market. The idea as an income player is to hold a diversified port of good yielding shares to minimise the risks. For example I also hold BATs and many other HY shares in various sectors.

[garycook] 30/5/2024 09:40

anhar. Not trying to predit the low.But just ststing fact.It seems like you have purchased, and you were too early. Surely buying NG under 800p, is much better than 900p, even with the 39p dividend ?

[zicopele] 30/5/2024 09:38

A 10% yield on BATS or Phnx beats 5% on National Grid.

[anhar] 30/5/2024 09:35

Obviously the lower the price the higher the yield but trying to predict the low is a fool's errand. It's already pretty low. Yes it can go much lower but with long term hold income investing, imo, you strike when the yield and fundamentals look sufficiently attractive. After that forget about price flucs and just enjoy the income over time.