National Grid plc (NGG) is a London-based utility company. It owns and operates of regulated electricity and gas infrastructure networks in United Kingdom (Wales and Scotland) and North Eastern United States (upstate New York, NYC, Long Island, Massachusetts, New Hampshire, and Rhode Island). It serves approximately 20 million consumers in the United Kingdom and the United States.
NGG is part of Mergent’s International Dividend Achiever Index and has been paying growing dividends since last 12 years. My objective here is to analyze if NGG continues to be a good dividend growth stock and how it will rate on my scale of risk-to-dividends.
Here I am looking at trends for past 9 years of corporation’s revenue and profitability. These parameters should show consistently growth trends. The image below shows the trend charts. continue reading rest of the article….
This is one question that almost all long term investors ask themselves. Most of the well known value investors that we read about in public domain, usually, are concentrated in teens. If that’s the case, then what about diversification? The concept of risk is very subjective because every person will have a different risk profile. These well known value investors have proficiency to balance risk vs. returns. They have resources to be able to manage that risk of concentration. As individual investors, we do not have such resources at our disposal, and hence risk level changes for us. In addition, we cannot generalize that a fixed “number of stocks” provides diversification.
Being a dividend investors, I am looking for companies that have potential to grow their dividends over time. I have observed that companies that grow their dividends, with good quality of earnings, the market value (or share price) also grows. This not only provides dividend cash flow, but also the capital appreciation over time. continue reading rest of the article….