Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to Steffers0,Anonymous,CryptoPlankton,GrahamPlatt,Walkeia, for Donating to support the site

National Grid Interims

Practical discussions about equity High-Yield Portfolios (HYP) for income
Forum rules
Tight HYP discussions only please - OT please discuss in strategies
idpickering
Lemon Quarter
Posts: 4758
Joined: November 4th, 2016, 5:04 pm
Has thanked: 693 times
Been thanked: 1569 times

National Grid Interims

#264108

Postby idpickering » November 14th, 2019, 7:08 am

Highlights
• Announcing today a new target to achieve net zero for own emissions by 2050
• Regulatory progress in US and UK:
o Multi-year agreement for Massachusetts Electric
o Draft RIIO-2 business plans submitted
o Welcomed Ofgem’s “minded-to” position on Hinkley-Seabank to move away from Competition Proxy Model
• Cost efficiency programme on track: £50m in the UK and $30m in the US in 2019/20
• Construction of three interconnectors on target
• Completed US Geronimo acquisition
• Received £2bn proceeds for sale of final Cadent stake
Financial performance
• Underlying operating profit up 1% to £1.3bn due to increase in US Regulated profits (statutory operating profit down 1% to £1.0bn reflecting adverse timing)
• Underlying EPS up 2% to 20.0p, due to a US tax settlement relating to prior periods
• Statutory EPS of 11.3p, down 11% reflecting adverse mark to market remeasurements
• Capital investment £2.7bn up 28% driven by increase in US capital spend and £0.2bn Geronimo acquisition
• Interim dividend 16.57p/share, in line with policy

And later;

Interim Dividend
The Board has approved an interim dividend of 16.57p per ordinary share ($1.0673 per American Depositary Share). This represents 35% of the total dividend per share of 47.34p in respect of the last financial year to 31 March 2019 and is in line with the Group’s dividend policy. The interim dividend is expected to be paid on 15 January 2020 to shareholders on the register as at 29 November 2019.
The Group’s dividend policy is to aim to grow the ordinary dividend per share at least in line with the rate of UK RPI inflation each year for the foreseeable future.
The scrip dividend alternative will again be offered in respect of the 2019/20 interim dividend. As previously announced, we do not expect to buy back the scrip shares issued during 2019/20 or 2020/21.



https://investors.nationalgrid.com/~/me ... 019-20.pdf

kempiejon
Lemon Quarter
Posts: 1188
Joined: November 5th, 2016, 10:30 am
Has thanked: 5 times
Been thanked: 249 times

Re: National Grid Interims

#264134

Postby kempiejon » November 14th, 2019, 8:50 am

The Group’s dividend policy is to aim to grow the ordinary dividend per share at least in line with the rate of UK RPI inflation each year for the foreseeable future.

Ta Ian,
I do like to see this sort of statement from my income machines. 5.3% historic yield, 5.5% forecast, 20 odd years of increasing dividends and a commitment to real increases for the foreseeable. Early days but they'll be on the short list for the new ISA season.

idpickering
Lemon Quarter
Posts: 4758
Joined: November 4th, 2016, 5:04 pm
Has thanked: 693 times
Been thanked: 1569 times

Re: National Grid Interims

#264141

Postby idpickering » November 14th, 2019, 9:02 am

kempiejon wrote:
The Group’s dividend policy is to aim to grow the ordinary dividend per share at least in line with the rate of UK RPI inflation each year for the foreseeable future.

Ta Ian,
I do like to see this sort of statement from my income machines. 5.3% historic yield, 5.5% forecast, 20 odd years of increasing dividends and a commitment to real increases for the foreseeable. Early days but they'll be on the short list for the new ISA season.


You're welcome kempijon. I topped up not long ago, as I became a bit more relaxed about the Corbyn risk, as it appeared to be dwindling (hopefully). They're (NG.) a long term hold for me now. The market seems to like these results, with the share up over 1% in a weak overall market. Not that we care about such things here?

Ian.

Arborbridge
Lemon Quarter
Posts: 3638
Joined: November 4th, 2016, 9:33 am
Has thanked: 709 times
Been thanked: 1150 times

Re: National Grid Interims

#264154

Postby Arborbridge » November 14th, 2019, 9:42 am

idpickering wrote:
kempiejon wrote:
The Group’s dividend policy is to aim to grow the ordinary dividend per share at least in line with the rate of UK RPI inflation each year for the foreseeable future.

Ta Ian,
I do like to see this sort of statement from my income machines. 5.3% historic yield, 5.5% forecast, 20 odd years of increasing dividends and a commitment to real increases for the foreseeable. Early days but they'll be on the short list for the new ISA season.


You're welcome kempijon. I topped up not long ago, as I became a bit more relaxed about the Corbyn risk, as it appeared to be dwindling (hopefully). They're (NG.) a long term hold for me now. The market seems to like these results, with the share up over 1% in a weak overall market. Not that we care about such things here?

Ian.


In fact, the share price has been generally perking up since the worst point in 2017 - which I took to mean that the market was more sanguine about the Corbyn risk (and other risks) for NG than for some other companies.

Arb.

IanTHughes
Lemon Slice
Posts: 933
Joined: May 2nd, 2018, 12:01 pm
Has thanked: 436 times
Been thanked: 418 times

Re: National Grid Interims

#264162

Postby IanTHughes » November 14th, 2019, 10:15 am

Within my HYP National Grid (NG) has behaved in a similar manner to Tate & Lyle Group PLC (TATE) as reported here: viewtopic.php?p=262712#p262712

In a similar vein, NG plods along with an apparently ever-increasing dividend, nothing spectacular but somewhat relentless: https://www.dividenddata.co.uk/dividend ... py?epic=NG.

Like TATE there is nothing particularly interesting about NG but, as I said about TATE, there are worse shares that one could have held over the years!

Here from my records is the dividend growth over a couple of decades (*):

Year End  | Dividend | 3 Years | 5 Years | 10 Years | 20 Years
31-Mar-20 | 48.6700 | 2.61% | 2.21% | 3.34% | 6.95%
31-Mar-19 | 47.3400 | 2.99% | 2.41% | 4.03% | 7.24%
31-Mar-18 | 45.9300 | 2.32% | 2.37% | 4.52% | 7.51%
31-Mar-17 | 44.2700 | 1.75% | 2.42% | 5.60% | 7.75%
31-Mar-16 | 43.3400 | 1.99% | 3.57% | 6.38% |
31-Mar-15 | 42.8700 | 2.96% | 4.48% | 7.30% |
31-Mar-14 | 42.0300 | 4.94% | 5.68% | 9.03% |
31-Mar-13 | 40.8500 | 5.86% | 6.71% | 10.25% |
31-Mar-12 | 39.2800 | 7.21% | 8.88% | 10.59% |
31-Mar-11 | 36.3700 | 7.20% | 9.28% | 10.43% |
31-Mar-10 | 34.4300 | 10.28% | 10.18% | 10.69% |
31-Mar-09 | 31.8800 | 10.95% | 12.49% | 10.55% |
31-Mar-08 | 29.5200 | 11.67% | 13.91% | 10.58% |
31-Mar-07 | 25.6700 | 13.19% | 12.33% | 9.93% |
31-Mar-06 | 23.3400 | 14.89% | 11.59% | |
31-Mar-05 | 21.2000 | 13.89% | 11.20% | |
31-Mar-04 | 17.7000 | 9.48% | 8.65% | |
31-Mar-03 | 15.3900 | 7.26% | 7.35% | |
31-Mar-02 | 14.3500 | 7.07% | 7.58% | |
31-Mar-01 | 13.4900 | 7.70% | | |
31-Mar-00 | 12.4700 | 7.79% | | |
31-Mar-99 | 11.6919 | | | |
31-Mar-98 | 10.7973 | | | |
31-Mar-97 | 9.9565 | | | |

* - Final for current year is assumed to increase by the same rate – 2.69% - as the now declared interim dividend.
* - Dividend totals for the years prior to 2011 have been adjusted for the 2 for 5 Rights Issue that was completed in 2010. Feel free to point out any errors
* - Two specials – 84.375p at 2017 Year End and 65p at 2006 Year End – both accompanied by a share consolidation, are not included


My HYP obtained NG in 3 tranches during 2015 for an average price of 891.4341p. So not much in the way of capital growth but an XIRR of 5.33% is a reasonable return in my view

As I said, nothing spectacular, especially over the past 6 or 7 years, but I like it!


Ian

tjh290633
Lemon Quarter
Posts: 3839
Joined: November 4th, 2016, 11:20 am
Has thanked: 257 times
Been thanked: 1329 times

Re: National Grid Interims

#264173

Postby tjh290633 » November 14th, 2019, 10:53 am

I got NG. by virtue of having Lattice which I got because it split off from BG Group plc in 2000 and then merged with NG. in 2002.

Had I had no other transactions, the IRR would have been 10.2%. However I did add to Lattice to get it up to weight, and have topped up NG. on 4 occasions and trimmed it back on a further four occasions. My IRR for the holding is 13.9%. The effective original cost is 400p, adjusted from the 150p valuation at demerger of Lattice.

TJH

Arborbridge
Lemon Quarter
Posts: 3638
Joined: November 4th, 2016, 9:33 am
Has thanked: 709 times
Been thanked: 1150 times

Re: National Grid Interims

#264217

Postby Arborbridge » November 14th, 2019, 12:29 pm

Here's my yield chart for NG, also showing rolling dividends and my purchases. As has been said, the dividends increase rather well.

Image

Bouleversee
Lemon Quarter
Posts: 2439
Joined: November 8th, 2016, 5:01 pm
Has thanked: 473 times
Been thanked: 317 times

Re: National Grid Interims

#264230

Postby Bouleversee » November 14th, 2019, 12:57 pm

"The Group’s dividend policy is to aim to grow the ordinary dividend per share at least in line with the rate of UK RPI inflation each year for the foreseeable future."

Anyone know what the latest RPI figure is? I gather CPI has come down a lot this year, 1.5% to October.

monabri
Lemon Quarter
Posts: 3170
Joined: January 7th, 2017, 9:56 am
Has thanked: 339 times
Been thanked: 859 times

Re: National Grid Interims

#264233

Postby monabri » November 14th, 2019, 1:08 pm


MDS1951
Posts: 39
Joined: November 4th, 2016, 8:31 pm
Has thanked: 9 times
Been thanked: 35 times

Re: National Grid Interims

#264236

Postby MDS1951 » November 14th, 2019, 1:16 pm

RPI in October 2019 was 2.1%.

https://www.ons.gov.uk/economy/inflationandpriceindices

Hope that helps!

MDS1951

MDS1951
Posts: 39
Joined: November 4th, 2016, 8:31 pm
Has thanked: 9 times
Been thanked: 35 times

Re: National Grid Interims

#264238

Postby MDS1951 » November 14th, 2019, 1:17 pm

Errr................SNAP!

monabri
Lemon Quarter
Posts: 3170
Joined: January 7th, 2017, 9:56 am
Has thanked: 339 times
Been thanked: 859 times

Re: National Grid Interims

#264244

Postby monabri » November 14th, 2019, 1:27 pm

Both right or both wrong..in equal measure! ;)

Bouleversee
Lemon Quarter
Posts: 2439
Joined: November 8th, 2016, 5:01 pm
Has thanked: 473 times
Been thanked: 317 times

Re: National Grid Interims

#264258

Postby Bouleversee » November 14th, 2019, 2:10 pm

Thanks, both. Glad my NS&I index linked certs. are still on RPI though not for much longer. I wonder if NG will follow suit and switch to CPI at some point. Sufficient unto the day.

Gengulphus
Lemon Quarter
Posts: 3101
Joined: November 4th, 2016, 1:17 am
Been thanked: 1606 times

Re: National Grid Interims

#264419

Postby Gengulphus » November 15th, 2019, 7:45 am

idpickering wrote:... as I became a bit more relaxed about the Corbyn risk, as it appeared to be dwindling (hopefully). ...

I'm not - especially after hearing about Labour's plans with regard to BT on this morning's news... It's a risk one basically has to take if one wants to live in the UK, as there are few UK companies for which one couldn't cobble together a political 'justification' for nationalisation, and restrictions on rights to own shares in foreign companies are also a danger. And even if one decides that one isn't that attached to living in the UK, emigrating just replaces the political risk involved in living in the UK with the political risk involved in living in another country...

That's not intended as an invitation for political debate on this board - such debate definitely belongs on Polite Discussions. What it is intended as is a suggestion that HYPers need to be realistic about the existence of political risk and that it's hard to assess which companies might be affected. Which doesn't mean that I'm going to sell National Grid (or BT for that matter) - just that I'm going to take extra care to be well diversified and not to be very overweight in any specific company or sector. Especially the former nationalised utilities - but I'm not going to avoid them entirely, because that involves going overweight in other sectors and that might well be an out-of-the-frying-pan-into-the-fire manoeuvre...

Gengulphus

NeilW
Lemon Slice
Posts: 359
Joined: November 4th, 2016, 4:27 pm
Has thanked: 61 times
Been thanked: 72 times

Re: National Grid Interims

#264474

Postby NeilW » November 15th, 2019, 10:12 am

Gengulphus wrote: What it is intended as is a suggestion that HYPers need to be realistic about the existence of political risks


The political risk, because these people have pledged themselves to the EU corporatocracy and can't therefore just reallocate things via parliament, is that your shares will be swapped for Gilts at market price. Anything else would be struck down as illegal by the Courts using EU higher law.

funduffer
Lemon Slice
Posts: 378
Joined: November 4th, 2016, 12:11 pm
Has thanked: 40 times
Been thanked: 178 times

Re: National Grid Interims

#264570

Postby funduffer » November 15th, 2019, 2:45 pm

NeilW wrote:The political risk, because these people have pledged themselves to the EU corporatocracy and can't therefore just reallocate things via parliament, is that your shares will be swapped for Gilts at market price. Anything else would be struck down as illegal by the Courts using EU higher law.


I think I agree. There would be an outcry if people's pension funds were suddenly robbed. A fair price to shareholders would seem to be the only politically acceptable way of achieving these aims, even if it is the form of Gilts.

TUK020
Lemon Slice
Posts: 791
Joined: November 5th, 2016, 7:41 am
Has thanked: 171 times
Been thanked: 378 times

Re: National Grid Interims

#264640

Postby TUK020 » November 15th, 2019, 8:55 pm

Glass half full......
By the time Corbyn is done nationalising, gilts will be on a higher yield than NG


Return to “High Yield Portfolios (HYP) - Practical”

Who is online

Users browsing this forum: No registered users and 7 guests