15 Global Dividend Stocks to Diversify Your Portfolio

11. National Grid plc (NYSE:NGG)

Number of Hedge Fund Holders: 20

Dividend Yield as of December 27: 4.02%

National Grid plc (NYSE:NGG) is among the best dividend stocks to invest in.

On December 12, Morgan Stanley initiated coverage of National Grid plc (NYSE:NGG) with an Overweight rating and an $85.50 price target.

That call followed an earlier move on December 6, when JPMorgan raised its price target on National Grid to 1,250 GBp from 1,225 GBp and kept an Overweight rating on the shares.

The company’s recent results help explain the confidence. On November 6, National Grid plc (NYSE:NGG) reported first-half adjusted profit that came in slightly ahead of market expectations. Higher UK electricity transmission revenue played a role, along with increased investment across its regulated businesses.

Management has been reshaping the portfolio for some time. Under the then Chief Executive John Pettigrew, the focus has narrowed toward regulated electricity and gas networks. That strategy included selling the US onshore renewables arm and agreeing to divest the Grain LNG terminal.

National Grid plc (NYSE:NGG) also reaffirmed its medium-term outlook. Underlying earnings per share are expected to track its targeted 6% to 8% compounded annual growth rate from the 2024–25 baseline. For the six months ended September 30, the company posted underlying operating profit of £2.29 billion ($3.07 billion). The market had been looking for £2.24 billion.

National Grid plc (NYSE:NGG) runs Britain’s energy systems and also operates electricity and gas businesses in New York and Massachusetts.