5-Star Dividend Stocks Poised to Outperform: National Grid
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electricity distributor National Grid (NYS: NGG) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at National Grid and see what CAPS investors are saying about the stock right now.
National Gridfacts
Headquarters (founded) | London (1990) |
Market Cap | $40.0 billion |
Industry | Multi-utilities |
Trailing-12-Month Revenue | $22.2 billion |
Management | CEO Steven Holliday (since 2007) Finance Director Andrew Bonfield (since 2010) |
Return on Equity (average, past 3 years) | 29.6% |
Cash/Debt | $4.4 billion / $39.3 billion |
Dividend Yield | 7.2% |
Competitors | Consolidated Edison (NYS: ED) Iberdola SSE |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 832 members who have rated National Grid believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those bulls, fellow Fool Justin Loiseau (TMFJLo), touched on the demographic tailwind working in the stock's favor:
National Grid has a customer base half the size of Duke Energy (NYS: DUK) , but it also has a secret weapon. Although its business in New York, Massachusetts, and Rhode Island won't skyrocket anytime soon (average 0.27% growth), investors would be wise to remember that 67% of this corporation's profits comes from its U.K. operations.
The 2011 U.K. census reported the kingdom's largest population increase ever. With a 7% growth rate, the U.K. grew by 3.7 million people, compared with the United States' 2.2 million additions.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, National Grid may not be your top choice.
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The article 5-Star Dividend Stocks Poised to Outperform: National Grid originally appeared on Fool.com.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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 Motley Fool has a disclosure policy.
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