RWNEF - National Grid: A 'Consistently Not Stupid' Buy
- This article initiates my coverage of National Grid.
- Utilities can provide a good yield and a safe harbour to ride out the current low sovereign yield, high stock price storm.
- Electrification is a strong tailwind that will increase asset bases and so provide long-term rewards through Return On Assets regulation.
- However, regulatory bodies especially in the UK could significantly impact the short term profitability of the company.
- Probability weighted 5-Year Dividend Discount calculation finds the company to be fairly valued.
For further details see:
National Grid: A 'Consistently Not Stupid' Buy