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National Grid plc (NG.L)

Utilities Out of favour

National Grid is the backbone of the UK's energy system, owning and maintaining the vast network of cables and pipes that keep the lights on and homes warm.

£11.90

Is National Grid plc a good stock for a UK beginner?

The honest version: National Grid is the backbone of the UK's energy system, owning and maintaining the vast network of cables and pipes that keep the lights on and homes warm.

No rating · no target price · nothing for sale here
Price+20.7%
52-week range+15% past year
£11.90
Low £10.00High £14.29
Where today's price sits versus its past year - context, not a signal.
If you had put £1,000 into National Grid plc
£1,207+21%

Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
£59.82B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
13.17M
Day range: The lowest and highest price the shares traded at during the latest day.
£11.84 – £12.04
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
£10.00 – £14.29
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
18.0
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
4.1%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
0.60
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 0.60
Calm
Wild
Steadier than most

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▼ -1% past week · ▲ +15% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

The UK's shift to renewable energy requires massive, profitable grid expansion.

The bear case

High debt levels become a burden if borrowing costs remain elevated for years.

What does National Grid plc do?

Think of National Grid as the motorway system for electricity and gas; they don't generate the power themselves, but they charge a fee to transport it across the country. Because they provide an essential service, their income is often regulated and predictable, making them a staple for many utility-focused portfolios. Their challenge is balancing huge investment plans to upgrade the grid for a greener future against keeping debt levels in check.

VQGMI
Factor profile

On our factor screen it looks strongest on quality and income, and weakest on momentum.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 44Quality: How profitable and financially healthy the company is (higher = stronger). 58Growth: How fast revenue and earnings are growing (higher = faster). 42Momentum: How the share price has been trending recently (higher = stronger recent run). 27Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 54
Quick checks
What's strong
  • Provides an essential service that people cannot live without.
  • Generally lower volatility compared to the wider stock market.
  • Reliable history of paying dividends to shareholders.
What to watch
  • Momentum screens low (27/100)
  • Political pressure to lower energy bills could hit profits.
  • Rising interest rates make their high debt more expensive to service.
  • Technical failures or extreme weather events could lead to fines.

What do National Grid plc's numbers mean?

P/E
19.1
This shows how much you are paying for every pound of the company's profit; a higher number suggests investors are willing to pay more for future growth.
Dividend yield
4.0%
This is the annual cash payout to shareholders as a percentage of the share price, which is often the main draw for those looking for steady income.
Beta
0.6
This measures how much the share price wobbles compared to the wider market; a number below 1 suggests the stock is generally less jumpy than the average company.
Net margin
18.3%
This tells us how much of every pound in revenue actually turns into profit after all the bills and taxes are paid.

Does National Grid plc pay a dividend?

Yes - National Grid plc currently pays a dividend of about 4.1% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.

More in Utilities

United UtilitiesPG&EEdison InternationalThe AES CorporationVistra Corp.Pinnacle West Capital CorporationDominion Energy, Inc.Eversource Energy
Appears in
Big UK shares, explainedShares beginners actually recogniseNational Grid vs SSE

What are the scenarios for National Grid plc?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

£14£12£10today · £12▲ Bull · £13• Base · £12▼ Bear · £11in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+5% to +8%Interest rates fall, making utility stocks more attractive for income seekers.
Base
-2% to +2%Business continues as usual with steady, regulated returns.
Bear
-5% to -10%Unexpected regulatory changes squeeze the fees they are allowed to charge.

What are the pros and cons of National Grid plc?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Provides an essential service that people cannot live without.
  • Generally lower volatility compared to the wider stock market.
  • Reliable history of paying dividends to shareholders.
The catch3
  • Growth is often capped by government regulators.
  • Requires constant, expensive investment to keep the grid running.
  • Carries a significant amount of debt to fund infrastructure.
Key risks3
  • Political pressure to lower energy bills could hit profits.
  • Rising interest rates make their high debt more expensive to service.
  • Technical failures or extreme weather events could lead to fines.
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: GBP · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.