As a regulated business, National Grid (NG.) has good visibility on its earnings and can give the City reliable guidance. As such, full-year results on 15 May are unlikely to hold many surprises. Current City consensus is for adjusted earnings per share to drop 7 per cent year on year to 51.9p - a continuation of the first-half trend, when higher operating and finance costs cut underlying earnings per share by 3 per cent.
But given that National Grid tends to be held for its yield rather than its growth characteristics, this well-flagged drop in earnings is unlikely to cause much concern. And the dividend is expected to keep heading in the right direction. The City expects a 3 per cent increase in the full-year payout to 42.1p, in keeping with National Grid's promise to increase dividends at least in line with consumer prices.