NGG - Is National Grid Stock a Buy?
National Grid (NYSE: NGG) is a somewhat unusual player in the utility space, and offers a compelling 5.5% dividend yield. A quick look at the electric and gas player would likely leave investors with a positive view of the company.
However, some recent corporate changes and political issues in Great Britain speak to a bigger problem that could slip under an investor's radar yet still cause major issues. Here's what you need to know before investing here.
On the surface National Grid is a boring utility, providing electricity and natural gas to its customers. It has done a pretty good job of this over time, including investing in its assets to keep reliability high and expanding its operations when appropriate. In the first half of fiscal 2019, for example, the company spent 2.7 billion pounds on capital investments. Its goal is to spend around 5 billion pounds in fiscal 2019, which is up from around 3.3 billion pounds in 2015.