Why National Grid Shares Are Up

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Why National Grid Shares Are Up

Why National Grid Shares Are Up?

The National Grid shares gained 19% upside in 2025, which is slightly higher than the FTSE 100's gain of 18%. When it comes to lighting up the nation, National Grid holds a very important role as a power network operator.

But we must also understand that National Grid operates in the utilities sector. So, even a yearly gain of 19% in the utilities sector is very impressive.

National Grid Offers A 4.4% Dividend Yield

The best part is that National Grid stock also has a 4.4% dividend yield, and the firm continues to raise the yield in line with the inflation rate.

quick glance at the National Grid shows there's a lot of stuff to like. In many areas of its business, National Grid has a monopoly.

Also, it is nearly impossible for the competition to replicate the distribution network of the National Grid. Looking ahead, experts believe that National Grid will continue to benefit from the consistent power demand.

And the National Grid also has decades of experience in power generation. All of these things make it a very integral part of the UK economy as a whole.

Last but not least, National Grid also had a solid 2025 in terms of profit and demand growth. The firm also added more power to the grid in 2025, which will be used in the AI growth zones.

It is worth noting that AI uses a lot of power, and this higher demand will also benefit the National Grid shares immensely in the year 2026.

So in a sense, National Grid stock also benefited due to the AI boom across the world. In fact, power is a key component for the AI infrastructure, and National Grid is a key player in the UK market.

The bottom line is that National Grid stock is actually a very good option for the year 2026. However, you shouldn't expect any outsized gains, as it is still a utility company after all.

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