National Grid (NG.) — Dividend Yield: 3.50%

Sector: Gas, Water and Multi-utilities | Market Cap: £67,038.10 | EPIC: NG.

National Grid (LON: NG.) is a critical infrastructure company and one of the most important utility stocks in the FTSE 100, with a market capitalisation of approximately £67.0 billion. The company owns and operates electricity and gas transmission networks in the United Kingdom and the northeastern United States. National Grid plays an essential role in keeping the lights on, connecting power generators to millions of homes and businesses through its extensive network of high-voltage transmission lines and gas pipelines.

National Grid's dividend yield of approximately 3.50% makes it a popular choice among income investors seeking stable, predictable returns from regulated utility assets. The company's revenues are largely underpinned by regulatory frameworks that provide visibility on allowed returns, reducing the uncertainty typically associated with equity investments. National Grid has historically been regarded as a reliable dividend payer, with a policy of growing its dividend in line with inflation.

For investors searching for defensive FTSE 100 utility stocks, National Grid offers unique exposure to critical energy infrastructure at a time of unprecedented investment in the electricity network. The energy transition is driving massive capital expenditure requirements as networks must be upgraded and expanded to accommodate increasing renewable energy generation, electric vehicle charging demand, and the electrification of heating systems.

National Grid's recent rights issue, its largest ever, demonstrated the scale of investment needed to modernise energy infrastructure. While the dilution concerned some investors, the capital raised positions National Grid to capture substantial long-term growth opportunities. The company's US operations, regulated by state-level utility commissions, provide geographic diversification and exposure to the American energy market. With its essential infrastructure assets, regulated earnings model, and pivotal role in enabling the energy transition, National Grid remains a cornerstone of conservative income portfolios within the FTSE 100.