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 (NGG 0.85%) 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 (ED 0.73%) Iberdola SSE |
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 (DUK 0.93%), 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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