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Reasons to Include National Grid Stock in Your Portfolio Right Now

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Key Takeaways

  • National Grid's fiscal 2026 EPS estimate rose 6.3% in 60 days to $5.25.
  • NGG plans to invest $69B across the UK and the United States over the next five years.
  • NGG's current dividend yield of 5.77% exceeds the S&P 500 Composite's 1.15%.

National Grid (NGG - Free Report) stands to benefit from its strategic investment in infrastructure upgrades and expansion. Rising demand from new customer connections makes NGG an appealing investment opportunity in the Zacks Utility Electric Power industry.

Let us focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.

NGG’s Earnings Growth Projection

The Zacks Consensus Estimate for NGG’s fiscal 2026 earnings per share (EPS) has increased 6.3% to $5.25 in the past 60 days.

The company’s (three to five years) earnings growth rate is 8.4%.

NGG’s Solvency

National Grid’s times interest earned ratio (TIE) at the end of fiscal 2025 was 3. The strong TIE ratio indicates that the company will be able to meet its interest payment obligations in the near term without any problems.

Dividend Yield of National Grid

NGG has been consistently increasing shareholder value by paying dividends. The company's current dividend yield is 5.77%, up from the S&P 500 Composite's 1.15%.

NGG’s Smart Investments and Customer Demand

National Grid has plans to invest nearly $69 billion (£60 billion) across its service territory in the United Kingdom and the United States over the next five years.

The company will benefit from increased demand resulting from new customer connections in its service zone. In total, 2.5 gigawatts (GW) of customer projects were connected to the transmission network this year, with 1.6 GW being renewables.

NGG’s Push for a Clean Energy Future

The company is enabling the energy transition for all and intends to achieve net-zero emissions by 2050. National Grid is working together with its partners to speed up the transition to a clean energy future. In the United States, NGG has made considerable investments in large-scale renewable energy projects, such as wind and solar.

NGG Stock Price Performance

In the past six months, NGG shares have risen 16.1% compared with the industry’s growth of 11.1%.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks related to the same industry are IDACORP, Inc. (IDA - Free Report) , Fortis (FTS - Free Report) and NorthWestern Energy Group, Inc. (NWE - Free Report) , each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

IDA’s long-term earnings growth rate is 8.1%. The Zacks Consensus Estimate for 2025 EPS is pegged at $5.83, which indicates a year-over-year improvement of 6%.  

FTS’ long-term earnings growth rate is 5.1%. The Zacks Consensus Estimate for 2025 EPS stands at $2.50, which suggests a year-over-year rise of 4.6%.  

NWE’s long-term earnings growth rate is 6.9%. The Zacks Consensus Estimate for 2025 EPS is pinned at $3.61, which calls for a year-over-year increase of 6.2%.

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