NG Share Price Today: Good Time to Trade?

National Grid plc (NG) is a British multinational electricity and gas utility company headquartered in London, England. It is one of the largest investor-owned utility companies in the world, so is it a good time to trade NG shares now?

Why invest in stocks in the UK

Like other markets, people like to invest in UK shares because they believe it has the potential to make profits. In the past 20 years, the total return of the FTSE 100 is 162.9%.

Traders on the other hand, might also seek short-term gains by trading with CFDs. That said, they can speculate on it rising by going long, as well as falling by going short.

Reasons to trading NG shares

NG is the only company that owns and maintains Britain’s energy system. With no real competitors, the company isn’t likely to be impacted too badly by crises like the 2008 recession or the 2020 pandemic. After all, people still use gas and electricity no matter what, right?

NG reported earnings results for the half year ended September 30, 2023. It said that it’s aiming for earnings growth of 5%-7% per year over the next few years. This may support the share price.

Also, the company has a good track record when it comes to dividend growth. For the last decade, annual yields have remained between 4% and 9%.

Risks to consider

In the past 5 years, NG’s earnings have grown by -2.33% per year.

Another obvious risk is debt on the balance sheet. Total NG debt is higher than 5 years ago, which could present challenges now that interest rates are rising rapidly.

Higher interest rates could also impact NG’s share price. As the yields of bonds look more attractive, investors shift their money from stocks to bonds, and share prices are likely to fall under pressure.

How to trade National Grid stock

1. Choose a brokerage for stocks: You will need to pick an online stock brokerage among many, but don’t worry – we’ve done it for you: Fortrade. It is a licensed brokerage regulated by FCA, offering CFDs on stock, index, forex and metal.
2. Create an account: Sign up a free Fortrade account, 0% commission.
3. Fund your account: Choose your method of payment and deposit money into your account.
4. Place the order: If you decide to trade NG at the current market price, place the order with fast execution.

Final words

When trading CFDs, you can use leverage, which enables you to open your position by paying a fraction of their full value, known as margin. But remember, leverage can increase both your profits and your losses. Consider seeking independent advice if necessary.

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