Should I buy National Grid stock in 2025?

Why trust HelloSafe ?

At HelloSafe, our expert has been tracking the National Grid share price for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by National Grid.

What is National Grid?

What is the National Grid stock price?

The price of National Grid stock is falling this week. The current share price stands at 1,061.50p, with a 24-hour change of -5.07%, and a weekly decrease of 1.79%. National Grid’s market capitalisation is now at $69.22 billion, and the average trading volume over the past three months is 1,154,077 shares. The price/earnings ratio is 17.22, the dividend yield is an attractive 4.35%, and the stock has a low beta of 0.29, indicating lower volatility than the broader market. For investors, this stable profile offers defensive appeal despite current price pressures.

Our full analysis of the National Grid stock

Having thoroughly reviewed National Grid’s latest annual results and assessed the stock’s performance over the last three years, we present below an in-depth analysis. By integrating financial fundamentals, technical signals, industry peer comparisons, and proprietary multi-source models, we aim to offer investors actionable insights grounded in the UK utility market’s realities. So, why might National Grid stock once again become a strategic entry point into the infrastructure and energy transition sector in 2025?

Recent performance and market context

National Grid stock is currently trading at 1,061.50p (LSE), representing a robust 22.99% gain over the past twelve months and +18.59% over six months, despite a recent pullback (-5.07% in the last 24 hours, -1.79% over the week). This resilience reflects the market’s confidence in a business at the core of the UK’s and northeastern US’s energy infrastructure. Recent highlights include a 28% jump in annual net profit to £2.83bn (March 2025 fiscal year), an improved earnings per share (EPS) of 73.3p (+2% year-on-year), and a proactive £60bn investment programme targeting grid modernisation, digitisation, and renewable integration through 2030. The company’s solid GBP 69.22bn ($70bn) market capitalisation and a consistently high free float ensure both institutional and retail interest remains significant.

On the macro front, the UK’s aggressive decarbonisation roadmap and urgent need for infrastructure upgrades support utilities capable of delivering scalable, secure grid capacity. National Grid further benefits from rising electricity demand as the UK and US transition away from fossil fuels. Its regulated asset base, inflation-linked revenues, and attractive 4.35% dividend yield create a rare blend of defensive characteristics and growth options. With market sentiment shifting from uncertainty to constructive outlooks for quality defensive plays, the stock appears poised to benefit from accelerating investment flows in the coming quarters.

Technical analysis

A closer look at technical indicators reveals an intriguing market structure suggesting a possible bullish reversal. National Grid's Relative Strength Index (RSI) stands at 23.56, deeply into oversold territory, historically associated with major inflection points. The MACD (-0.81) is negative, echoing recent short-term weakness; however, it also hints at mean-reversion potential as interim sellers capitulate. Price action is currently hovering just above key support zones at $66.59 and $67.93, while strong resistance is identified near $74.63.

Moreover, prices have retreated below all major moving averages (20-, 50-, 100-, and 200-day), typically a red flag, but within a long-term uptrend this can represent an attractive “reset” opportunity for disciplined buyers. Volumes remain healthy, and the overall structure—surging yearly returns and fundamental support—suggests the stock is building a credible technical platform for a new bullish phase. Technical “strong sell” signals at these levels for such a defensive stalwart have historically preceded periods of renewed buying and strong price recoveries.

Fundamental analysis

Fundamentals paint a compelling story for National Grid as a structural winner in both income and capital growth strategies. Despite a short-term dip in revenues (£18.38bn in FY 2025, -7.4%), the company delivered record net profits, reflecting strong cost controls, favourable refinancing, and growth in high-margin regulated and interconnector assets. A high 4.35% dividend yield, combined with robust net income and sustained dividend cover, reinforces National Grid as a core holding for income-seeking investors.

Valuation remains attractive against sector peers, with a trailing P/E of 17.22 and a low beta (0.29), signalling resilience amid heightened market volatility. The company’s inflation-protected regulated returns, dominant market position (4,481 miles of transmission infrastructure in the UK), and diversification into New York and New England provide clear visibility on forward cash flows.

Strategic investments in grid digitalisation, AI-driven optimisation, and expansion of inter-regional capacity underpin above-sector-average projected annual EPS growth (6–8%). The long-term nature of the infrastructure, combined with a recognised brand and stable regulatory frameworks, supports sustained profitability and positions National Grid as a backbone of the energy transition in both the UK and the US.

Volume and liquidity

Average daily volume on the London market remains strong at 1,154,077 shares over three months, indicating consistent demand and deep liquidity attractive to a broad investor base. The company’s sizeable free float, underpinned by diversified institutional participation (including FMR LLC and Bank of America among major holders), contributes to robust price discovery and lower trading costs.

This high turnover facilitates both short-term tactical positioning and long-term strategic accumulation without material impact costs. Top-tier liquidity is a core pillar for an investment-grade utility, ensuring that even during bouts of market turbulence, exits and entries can be executed efficiently and confidently.

Catalysts and positive outlook

Several near- and medium-term bullish catalysts reinforce the growing case for National Grid. The upcoming £60bn capital expenditure programme, the largest in its history, targets grid resilience, digital transformation, and the integration of renewables—sectors with powerful structural tailwinds in the UK and globally. Successful execution of its AI and smart-grid initiatives will future-proof operations and unlock further efficiency gains, with National Grid Partners investing up to $100m in energy-focused tech startups.

The group is well positioned to benefit from regulatory developments such as Ofgem’s RIIO-ET3 regime (2026–2031), which is likely to ensure stable, predictable returns for regulated asset owners. Moreover, market liberalisation and the accelerating push for electrification in transport and heating further increase demand for robust, interconnected grids.

On the ESG front, National Grid’s commitment to climate finance—having already achieved its £100bn “green” financing target for 2021–2025—boosts its reputation as a sustainability leader and attracts purpose-driven capital. The upcoming CEO succession, set for November 2025, is expected to proceed smoothly, and could act as an additional catalyst if accompanied by strategic updates or a renewed medium-term vision.

Investment strategies

• Short-term traders: The stock’s dip into oversold territory offers the basis for a technical rebound towards the 20-day and 50-day averages, with well-defined support for setting disciplined stop-losses.
• Medium-term investors: With the next leg of its capital deployment and regulatory cycle beginning, holders can position ahead of earnings updates or major ESG announcements. Technical resets at these levels have historically delivered double-digit returns over three to twelve months.
• Long-term holders: National Grid’s inflation-protected returns, dominant positioning in the UK and US utilities markets, and compounding dividend growth offer a compelling “buy-and-hold” rationale. The structural transition to renewables and national net zero objectives anchor multi-decade visibility and global relevance.

Current price action, combined with technical and fundamental signals, suggests that National Grid may be entering an ideal accumulation zone. A further dip could present incremental buying opportunities, giving disciplined investors the ability to enhance yield and participate fully in the sector’s upside re-rating.

Is it the right time to buy National Grid?

National Grid stands out as a resilient, forward-looking infrastructure champion, uniquely positioned for both defensive stability and secular growth. Key strengths include predictable earnings, an attractive and growing dividend, robust liquidity, leadership in the energy transition, and a rare combination of technical reset and strong longer-term catalysts. Despite recent price weakness, the case for a renewed upswing appears well-supported by both macro and company-specific tailwinds.

As the UK and global economies accelerate electrification and renewables integration, National Grid’s regulated asset base, technological innovation, and strategic investments should drive sustained value creation for shareholders. While all stocks carry risks, the convergence of supportive fundamentals, technical opportunity, and powerful thematic drivers suggests that National Grid stock seems to represent an excellent opportunity for investors looking to combine reliability, growth, and strong ESG credentials in their portfolio.

How to buy National Grid stock in the UK?

Buying National Grid stock online is straightforward and secure when using a regulated UK broker. Investors can choose between buying shares outright (spot buying) or trading via Contracts for Difference (CFDs), giving flexibility to suit various strategies and risk profiles. Spot buying offers long-term ownership while CFDs allow you to speculate on price movements with leverage. Read on to explore these two methods in detail—then check the broker comparison table further down the page for the best platforms.

Spot buying

A cash purchase means you buy National Grid shares directly and become a shareholder, with rights to dividends and voting. Typical UK brokerages charge a fixed commission per trade—often between £5 and £10 per order. This method is popular for long-term investors seeking stability from National Grid’s solid dividends and defensive sector.

Gain scenario

If the National Grid share price is $70.61 (approx. £55.50), you can buy around 14 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on National Grid shares without owning them. You profit from price movements by opening positions with leverage, typically paying a spread (the broker’s margin) and overnight financing costs for positions held for more than a day. This approach is best suited for active traders looking to amplify gains in the short term.

CFD Position with Leverage: Gain Scenario

You open a CFD position on National Grid shares, with 5x leverage.

This gives you a market exposure of $5,000.

Gain scenario:

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before investing, it is important to compare brokers’ fees, trading conditions, and available services to find the most suitable platform for your needs. The decision between spot buying and CFD trading should be based on your investment goals and risk tolerance. See the comparison table below for top broker options in the UK market.

Our 7 tips for buying National Grid stock

The latest news about National Grid

National Grid confirms an additional $100 million investment in energy-focused artificial intelligence startups. This commitment by National Grid Partners is aimed at accelerating innovation for grid resilience and optimisation in the UK and globally. The investment enhances the company's strategic position as the UK's leading electricity and gas infrastructure provider, capturing opportunities in the fast-evolving energy technology landscape.

Annual results show a 28% year-on-year increase in net profit, with gains in earnings per share. For the fiscal year ending March 2025, National Grid posted a net profit of £2.83 billion, supported by robust operational efficiency and margin management. Earnings per share climbed to 73.3p, reflecting improved profitability and confirming the firm’s resilience amid sector challenges and regulatory evolution.

Dividend yield remains attractive at 4.35%, reinforcing National Grid’s status as a defensive income investment. Despite a 7.4% decline in revenue, the company maintained its annual dividend at $3.07 per share, underpinned by strong cash generation. The dividend continues to appeal to UK investors seeking stable returns within the utilities sector's regulatory framework.

Major UK regulatory review underway with Ofgem’s RIIO-ET3 draft ruling in focus for future earnings. Ongoing consultations will define National Grid’s allowable returns and capital expenditure framework from 2026-2031. While short-term uncertainty exists, long-term prospects are buoyed by the UK's commitment to energy transition and grid modernisation, crucial for supporting renewables and decarbonisation goals.

CEO succession plan advances smoothly with stable transition expected by November 2025. John Pettigrew will step down after a decade in charge, with a structured succession plan already in place. This proactive governance is viewed positively by investors, as it ensures ongoing leadership continuity during a period of substantial investments and regulatory developments.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.