London, Jan 7, 2026, 08:38 (GMT) — Regular session
- National Grid shares rose in early London trade, extending Tuesday’s rally.
- Investors are focused on the interim dividend due on Jan. 13 and the next results date in May.
- Regulated returns underpin the story, but politics and rates remain key swing factors.
National Grid NG.L shares rose in early London trade on Wednesday, holding near recent highs after a strong prior session. The stock was up 0.5% at 1,178 pence by 0814 GMT, after touching 1,185 pence on Tuesday and closing at 1,172 pence, data from Shareprices.com showed.
The move comes as UK equities start 2026 near record territory, with the FTSE 100 finishing Tuesday at an all-time high after a broad rally led by heavyweight healthcare names. Investors have also been pricing in Bank of England rate cuts later this year, a theme that can support rate-sensitive, dividend-paying stocks.
Income remains a near-term hook. National Grid’s board approved an interim dividend of 16.35p per ordinary share, expected to be paid on Jan. 13, while its timetable flags full-year results on May 14.
Trading activity has not been especially heavy despite the climb. Tuesday’s volume was 6.7 million shares, below the stock’s 50-day average of 9.2 million, MarketWatch data showed.
Bigger picture, the company’s earnings hinge on “regulated” returns — profit levels set by watchdogs in exchange for running essential networks. Britain’s energy regulator Ofgem in December approved 28 billion pounds of network investment over five years and said the programme would add 108 pounds to consumer bills by 2031; Ofgem chief executive Jonathan Brearley said the spending would help “insulate us from volatile gas prices.” Reuters
National Grid has argued it is benefiting from higher investment across its regulated businesses. In November, it posted underlying (adjusted) operating profit of 2.29 billion pounds for the six months to Sept. 30, slightly above a company-compiled consensus of 2.24 billion, and reaffirmed a medium-term target for underlying earnings per share growth of 6% to 8% a year from a 2024-25 baseline, Reuters reported.
But the downside case has not gone away. Utilities can lose favour if interest rates stay high, and a heavy capital-spend cycle raises execution risk and leaves less room for error if regulators or customers push back against higher network charges.
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