This is what I’d do about National Grid shares right now
The National Grid (LSE: NG) share price has rallied strongly and is up by about 15% so far in 2019. Is it too late to buy into this income stalwart?
In this article, I’ll give my verdict on National Grid. I’ll also reveal another income stock I like, which currently yields 7%.
The ultimate buy-and-hold?
The future is always uncertain. And it’s all too easy to construct worrisome stories that discourage you from making long-term investments.
After all, National Grid’s current UK business basically consists of operating electricity networks that are connected to a handful of big power stations and wind farms. Its gas network is similar.
What will happen if we all shift to microgeneration, with solar panels, fuel cells and battery packs in our garages? This kind of technology is becoming a reality and environmental concerns suggest it’s likely to happen. Will it make the grid redundant?
I think not. National Grid will need to change and invest in its network. But the idea that homes and businesses will go off-grid seems unlikely to me. To balance supply and demand and minimise pollution, I think it will be essential to be able to distribute energy efficiently across the UK.
Indeed, I think international energy trading is likely to expand, through greater use of undersea interconnectors. This is an area where National Grid has already been investing heavily.
https://www.fool.co.uk/investing/2019/0 ... right-now/