National Grid increases its dividend despite profit falling

National Grid, the electricity and gas utility company, announced full-year EPS dropped 17% on year to 36.8p and operating profit fell 3% to 2.78 billion pounds.

National Grid, the electricity and gas utility company, announced full-year EPS dropped 17% on year to 36.8p and operating profit fell 3% to 2.78 billion pounds, citing a 117 million pounds increased provision for U.S. bad debts related to the COVID-19. The company proposed a final dividend of 32.0p per share and full-year dividend totaled 48.57p per share, up 2.6% on year. Regarding the outlook, the company stated: "For 2020/21, we have assumed an impact on Group underlying operating profit, based on the scenario set out in the Forward Guidance section, of around £400 million from COVID-19."

From a technical perspective, an inverted Head & Shoulders pattern formed in March – April. The daily Relative Strength Index (RSI, 14) has landed on its horizontal support near 40% and is reversing up. As long as 875p is support (May 22 low), the bias remains bullish. A break above 994p would call for a further rise towards February’s high at 1073p. Alternatively, a push below 875p would call for a test of March low at 789p. 

Source: GAIN Capital, TradingView

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