Shares of the FTSE 100-listed National Grid PLC (GB:NG) shine among income investors with a dividend yield of nearly 6%. The company carries an impressive 5.74% dividend yield, significantly exceeding the industry average of 2.73%. Moreover, National Grid has consistently distributed dividends since 2005, gradually increasing its payouts.
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In terms of share price growth, analysts are highly optimistic about the stock, forecasting a 20% growth rate with a Strong Buy rating.
National Grid is a British utility company engaged in the distribution of electricity and gas. Year-to-date, NG stock has fallen by 1.31%.
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National Grid Declares Interim Dividend
National Grid usually declares dividends twice a year, alongside its full-year results in May and half-year results in November. Last month, the company announced its interim dividend of 15.84p per share for FY24/25. The company’s rebased interim dividend marked a year-over-year growth of 6%. It is important to note here that the rebased dividend per share is calculated under the hypothetical assumption that all additional shares from the rights issue were in existence during previous reporting periods.
Meanwhile, the interim dividend also accounted for 35% of the total rebased dividend of 45.26p per share for the fiscal year 2024/25, consistent with the group’s dividend policy.
Moving ahead, the company expects a 6–8% CAGR (compounded annual growth rate) in underlying EPS through 2025/26 as part of its five-year financial plan. This further reinforces its commitment to a sustainable and steadily growing dividend policy.
Is National Grid a Buy or Sell?
According to TipRanks consensus, NG stock has received a Strong Buy rating, based on 11 Buys and one Hold recommendation. At 1,150.45p, the National Grid share price target reflects an increase of 20% from the current level.
