National Grid plc Plans 6% Annual Asset Growth

The shares of National Grid (LSE: NG) (NYSE: NGG.US) gained 10p to 771p during early trade this morning after the FTSE 100 member confirmed plans to increase its regulated assets by 6% per annum during the next few years.

National Grid, which operates the country’s electricity transmission system, said today that its capital expenditure during the twelve months to May 2014 would continue to be in the region of £3.6bn to £3.9bn.

The blue chip stated that capital investment within its UK operations was expected to match the amounts spent during 2012/13. Current projects include installing new cables in various London tunnels and planning a high-voltage direct current link in Scotland.

National Grid added that its investment in the States would continue at around £1.3bn to £1.4bn a year.

Steve Holliday, National Grid’s chief executive, said:

Our businesses have started the year well.

“As a result, we are maintaining our outlook for 2013/14, reflecting the expected delivery of another year of solid operating and financial performance.”

Prior to today, City experts were predicting National Grid would deliver earnings of 53p per share and pay a dividend of 42p per share.

Those projections place the shares on a possible P/E of 14 and a potential yield of 5.5%.

Of course, whether that valuation and today’s trading update combine to make the shares of National Grid a ‘buy’ remains something only you can decide.

However, if you already own National Grid shares and are seeking an alternative buying opportunity, the Fool’s top analysts have named one company they believe will generate superior long-term capital growth…

…and such is their conviction, they have declared the share “The Fool’s Top Growth Stock For 2013“.

Simply click here for the report — it’s free.

> Maynard does not own any share mentioned in this article.