5-Star Stocks Poised to Pop: National Grid
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, National Grid (NYS: NGG) , which operates regulated electricity and gas infrastructure networks, has earned a coveted five-star ranking.
With that in mind, let's take a closer look at National Grid's business and see what CAPS investors are saying about the stock right now.
National Grid facts
|Headquarters (Founded)||London (1990)|
|Market Cap||$34.5 billion|
|Trailing-12-Month Revenue||$21.9 billion|
|Management||CEO Steven Holliday (since 2007)|
Finance Director Andrew Bonfield (since 2010)
|Return on Equity (Average, Past 3 Years)||29.3%|
|Cash/Debt||$4.6 billion / $38.8 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 840 members who have rated National Grid believe the stock will outperform the S&P 500 going forward.
National Grid should be able to grow its very attractive dividend. ... Challenges and risks arise with regulators, as is typically the case with utilities. One of my favorite aspects of this stock is the direct inflation hedge, as consumer rates are directly linked to a UK inflation index. Combine this with a healthy and growing yield and you have a real return on investment in the form cash.
Of course, despite its five-star rating, National Grid may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 11 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of National Grid. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.