London, May 26, 2026, 10:24 BST
- National Grid was up 1.1% at 1,295p in delayed morning trade.
- The stock traded higher with London reopening after the UK bank holiday on Monday.
- Investors eye lower gilt yields, the May 28 ex-dividend date, and the company’s plan for heavy grid spending.
National Grid shares gained Tuesday morning in London as UK stocks rallied after the holiday. The utility also drew focus on its dividend, with the stock set to go ex-dividend later this week.
The stock was last indicated at 1,295p, a gain of 1.09%, according to a delayed print at 10:03 a.m. BST. The day’s range ran from 1,281.5p to 1,298.5p.
National Grid is now caught between two forces: investors want reliable regulated returns, but there’s concern about how much companies with a lot of debt like National Grid will have to spend to grow their power networks. That’s why the latest move is in focus.
FTSE 100 climbs as London returns from bank holiday
London stocks started higher after the spring bank holiday, with the FTSE 100 adding 65 points, or 0.63%, in early trade. Investors kept an eye on lower UK bond yields and signs of movement on the U.S.-Iran talks. Bond yields track the returns on government debt. Lower yields can lift interest in dividend stocks like utilities.
National Grid’s ordinary shares go ex-dividend on May 28 for a 32.14p final payout set for July 23. Investors who buy after the 28th won’t get the dividend, and shares typically move on the ex-dividend date.
Water stocks stayed up, backing the idea this wasn’t just a single name move. United Utilities added 1.4% at 1,379p. Severn Trent inched up 0.19% to 3,134p in late Davy data.
The outlook is still uneven. National Grid fell short of profit forecasts for the year earlier this month due to higher storm-repair costs in its U.S. operations, but the company stuck with its 2027 target for adjusted earnings per share growth of 13% to 15%. EPS stands for earnings per share, or profit split by share count.
Chief Executive Zoe Yujnovich told Reuters the company hasn’t seen much impact from U.S. tariffs and said about 90% of its U.S. procurement is sourced locally. She also said Middle East tensions aren’t expected to cause major supply-chain disruption.
Hargreaves Lansdown’s Aarin Chiekrie said after the results that “there were no surprises” and pointed to a boost from higher allowed revenues in transmission. Allowed revenue is what the regulator lets a network operator recover from customers through bills. HL
National Grid’s investment plans are getting bigger and need more capital. Hargreaves Lansdown said capital investment went up 18% to an all-time high of £11.6 billion this year. Net debt grew 7% to £44.2 billion.
That’s the trade-off here. Putting more money into the grid grows the regulated asset base, which can lift future earnings. But it also opens the company up to higher borrowing costs, delays in construction, and whatever regulators decide.
Bond yields could climb again or more energy tensions could lift inflation worries. Daniela Hathorn, senior market analyst at Capital.com, said “the tolerance for negative headlines is shrinking” as investors track Middle East talks and watch oil prices. The Guardian
National Grid shares ended higher Tuesday, but that move came without any new company news. The stock still trades like a defensive income play in a firm market. The next hurdle comes after the dividend cut-off, as investors take another look at the funding needs for National Grid’s major grid expansion in Britain.
