Image source: National Grid plc
The FTSE 100 has some outstanding passive income stocks. And one of the most obvious is National Grid (LSE:NG).
At today’s prices, £10,000 would buy 1,019 shares in the electricity transmission business. And that could turn into a meaningful second income over time.
Competition
From an investment perspective, the most attractive thing about National Grid might be its competitive status. It essentially operates as a monopoly in the UK.
The risk of disruption from another company is close to zero. The prohibitive cost and regulatory difficulties make building competing infrastructure nearly impossible.
This gives National Grid a high degree of predictability in its revenues. And that in turn allows it to operate with higher levels of debt than other businesses might be able to.
Investors should note, however, that the regulation that provides this protection…
