Dividend Spotlight: National Grid

National Grid Logo

In August National Grid was my biggest dividend payer so I selected this company for the first Dividend Spotlight I publish

National Grid is operating electricity and gas networks mainly located in the UK and USA. National Grid. As system operator with regulated prices National Grid is having a nice and steady cashflow.

It’s often that utilities are regulated companies. Due to utilities often having some kind of local monopoly by being the ownly one owning a distribution network for gas or electricity, it’s common that authorities regulate the pricing these kind of companies are allowed to set.

The dividend payment frequency of National Grid is 2 times per year. 70% of their yearly dividend is paid in August. This is probably why National Grid is my biggest payer in August.

I received 2 dividend payments from National Grid this year of in total €85,70. National Grid is at the moment 1,7% of my portfolio and responsible for 1,8% of my dividend income.

Current yield of National Grid is 5,73%.

As a regulated utility the dividend of National Grid is increasing slowly, but steady. The graph below is showing the dividend history of National Grid in last few years:

The compounded anual growth rate since 2016 is 4,37%, but last 5 years the CAGR is 2,37%.

I expect an average dividend growth in the next 5 years between 2.5% – 3,0%. It’s not the biggest dividend growth in my portfolio, but it will result in a nice cashflow to reinvest.

National Grid increases final dividend from 30,44p to 31,26p

National Grid announced an increase of their final dividend from 30,44p to 31,26p. This is an increase of 2,7%. National Grid is a British multinational electricity and gas utility company.

As a result of the 200 shares National Grid I own, my yearly estimated dividend income will increase by €2,13.

The yield on cost of my National Grid position based on the full year dividend is now 5,35%.

This dividend increase is my 25th dividend increase over 2019. On the otherhand I have 3 dividend reductions. The 28 dividend changes resulted in €96,57 extra dividend per year.

+4,6 Final Dividend Increase National Grid

During the 2017/2018 full year results publication National Grid announced a 4,6% increase of their final dividend over the bookyear 2017/2018. The final dividend will increaes from 29,1 pence to 30,44 pence.

I own 100 shares National Grid so this final dividend increase will result in 134 pence extra dividend. In euro’s this is €1,53.