Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



National Grid Prepares Its New Dividend Policy

LONDON -- National Grid  (LSE: NG  ) (NYSE: NGG  ) shareholders were cheered today when the company said it had agreed U.K. price controls with Ofgem covering the next eight years. Although at first glance this may appear to be a somewhat obscure announcement, it's important for investors, as it has cleared the way for National Grid to set its new dividend policy.

For the current financial year, ending on March 31, National Grid's plan is to increase dividends by 4%. This is down from its recent level of dividend increases, which has been 8%.

The new dividend policy will take effect from April 1, 2013, and National Grid said it expected to announced it on or before its next set of results are published on May 16, 2013.

Steve Holliday, chief executive of National Grid, said in response to today's news:

I am pleased to confirm agreement of the RIIO price controls for our U.K. businesses. This is the culmination of a new process that started over three years ago, and represents another opportunity for National Grid to deliver further shareholder value.

These arrangements give our U.K. businesses their longest ever period of regulatory clarity. This enables us to focus on driving efficiency across our operations while building the infrastructure that the country needs and at the same time realize the benefits of excellent performance for both customers and investors.

Given that this was arguably the biggest uncertainty facing the company right now, the share price response seems rather muted, with a gain of just 1% to 730 pence. This is the highest level the shares have been for over four years, but it's still about £1 short of the all-time high set at the tail end of 2007.

National Grid is profiled in this special free report from The Motley Fool, where we highlight why our advisors like its long-term income prospects, and the reasons why it escapes a lot of bad press endured by other utility shares. Get your copy of this free report today.


Read/Post Comments (0) | Recommend This Article (2)

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.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2287730, ~/Articles/ArticleHandler.aspx, 9/26/2016 8:35:56 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 8:19 AM
NG $1081.50 Up +7.00 +0.65%
National Grid CAPS Rating: No stars
NGG $70.53 Down -1.13 -1.58%
National Grid CAPS Rating: ****