Why National Grid, Balfour Beatty, and Marston's Should Lag the FTSE 100 Today

LONDON -- There appears to be no stopping the FTSE 100 (FTSEINDICES: ^FTSE  ) at the moment, as it has once again set a new five-and-a-half-year high of 6,711 points. As of 7:55 a.m. EDT, it's up 0.24% to 6,709. If the index maintains its current level by close, it will have risen for 11 consecutive trading days since its last dip on April 30.

Still, not all the companies in the various FTSE indexes are enjoying the same success. Here are three that are lagging behind today.

National Grid
National Grid shares have dropped 2.2% this morning, even though the gas and electricity supplier reported a 6% rise in underlying pre-tax profit to 2.7 billion pounds from a 4% rise in revenue. Underlying earnings per share rose 12% to 56.1 pence, which is pretty much in line with the City's expectations. The full-year dividend was lifted 4% to 40.85 pence per share in accordance with the firm's new dividend policy, providing a yield of 4.9% -- the new policy aims to raise the annual dividend at least in line with the RPI inflation rate.

Chief executive Steve Holliday said: "In the U.K., we are positioned to make a strong start to the new eight year regulatory regime. We are focused on meeting our regulatory commitments by operating efficiently and investing in essential infrastructure, while delivering high standards of customer service, driving good returns for shareholders."

Balfour Beatty (LSE: BBY  )
I'd usually expect the announcement of a major contract award to boost a company's share price. But that's not what happened to Balfour Beatty this morning after the construction and services firm told us of a new 76.5 million pound deal in Melbourne, Australia. Instead, the shares dropped 1.8%.

The new road and rail project awarded as part of the NetworkX Alliance provides business for Balfour Beatty's rail division and its professional services division and will involve the removal of a key road and rail level crossing in Melbourne.

Marston's (LSE: MARS  )
Interim results sent shares in Marston's down 3.7% pence this morning, though they are still up nearly 60% over the past 12 months. While revenue for the pub operator and brewer was up 4.7% to 358 million pounds, underlying pre-tax profit fell by 18% to 27.6 million pounds due to higher financing costs, and underlying EPS fell 19% to 3.8 pence per share. But the company did lift its interim dividend by 4.5% to 2.3 pence per share.

Despite the rises in finance costs, Marston's reckons it will see higher profit and lower costs in the second half and says its expectations for the full year are unchanged. The current consensus suggests a 6% rise in full-year EPS to around 13 pence, with a 6.4 pence dividend for a yield of 4.3%.

Finally, reliable dividends can more than compensate for the day-to-day ups and downs of share prices. So how about a company that's offering a 5% yield and could be set for some nice share-price appreciation, too? It's the subject of our brand-new report "The Motley Fool's Top Income Share For 2013," which you can get completely free of charge -- but it will only be available for a limited period, so click here to get your copy 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.

DocumentId: 2435105, ~/Articles/ArticleHandler.aspx, 7/30/2014 7:32:56 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...


Advertisement