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 (NYSE: 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 Grid facts

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 (NYSE: 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 (NYSE: 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.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 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.

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Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 11, 2012, at 1:18 PM, davstein48 wrote:

    How can we take you seriously when you are too lazy to check the correct dividend yield? Everyone knows that most European companies pay different dividend amounts during the year. If you depend on Yahoo finance you will always have it too low or too high.

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8/19/2014 4:04 PM
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National Grid CAPS Rating: *****

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