Hello readers, how’s your Monday? I received a news from National Grid (NGG) about their special dividend. It will sell 61% of its UK gas business to a consortium of multinational investors for ￡4 billion. Out of which it will return ￡3.2 billion as a special dividend. The way how it will pay is as follows.
Since I own 66 shares, I will receive somewhere around $350 special dividend and my owned shares will decrease to 60.5.
Actually I have been disappointed by NGG’s dividend. Although it has been increase it dividends in ￡, ADR dividends have been in a negative trend as you can see in the graph below.
This is because sterling has been depreciating against US$. Exchange rate is a risk that we as individual investors can not control.
Disclosure: Long NGG