Why National Grid Stock Deserves a Spot in Your Portfolio Right Now

National Grid NGG stands to benefit from its strategic investment in infrastructure upgrades and expansion. Rising demand from new customer connections, along with its low-risk, high-quality assets, makes NGG an appealing investment opportunity in the Zacks Utility Electric Power industry.Let us focus on the factors that make this Zacks Rank #1 (Strong Buy) company a strong investment pick at the moment.NGG’s Earnings Growth ProjectionThe Zacks Consensus Estimate for NGG’s fiscal 2026 earnings per share (EPS) has increased 2.6% to $5.07 in the past 30 days.The company’s (three to five years) earnings growth rate is pegged at 8.4%.NGG’s SolvencyNational Grid’s times interest earned ratio (TIE) at the end of fiscal 2025 was 3. The strong TIE ratio indicates that the company will be able to meet its interest payment obligations in the near term without any problems.NGG’s Drive Toward Clean Energy GoalsThe company is enabling the energy transition for all and intends to achieve net-zero emissions by 2050. National Grid works together with its partners to speed up the transition to a clean energy future. In the United States, NGG has made considerable investments in large-scale renewable energy projects such as wind and solar.NGG’s Strategic Investments and Customer DemandNational Grid has plans to invest nearly $69 billion (£60 billion) across its service territory in the United Kingdom and the United States over the next five years.The company will benefit from increased demand resulting from new customer connections in its service zone. In total, 2.5 gigawatts (GW) of customer projects were connected to the transmission network this year, with 1.6 GW being renewables.National Grid’s Dividend YieldNGG has been consistently increasing shareholders’ value by paying dividends. The company's current dividend yield is 5.73%, up from the S&P 500 Composite's 1.18%.NGG Stock Price PerformanceIn the past six months, NGG shares have risen 23.6% compared with its industry’s growth of 8.9%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks related to the same industry are Entergy Corporation ETR, NiSource Inc. NI and CenterPoint Energy CNP, each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.ETR’s long-term earnings growth rate is 9.5%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.88, which indicates a year-over-year improvement of 6.3%.  NI’s long-term earnings growth rate is 7.9%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.88, which suggests a year-over-year rise of 7.4%.  CNP’s long-term earnings growth rate is 7.8%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.75, which calls for a year-over-year improvement of 8%.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NiSource, Inc (NI): Free Stock Analysis Report Entergy Corporation (ETR): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report National Grid Transco, PLC (NGG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks