I’ve long been a fan of power provider National Grid (LSE: NG) for the passive income it throws off. But is it actually the best FTSE 100 dividend stock to buy?
Let’s take a closer look.
Market-beating yield
The first thing to grab me when assessing this company’s credentials is the size of the dividend yield.
As I type, this sits at 5%. That’s quite a bit higher than the 3.6% or so I’d get from owning a fund that simply tracks the return of the index.
So far, so good.
Other things I like
Aside from that more-than-reasonable yield, it’s worth noting that National Grid has a decent record when it comes to hiking dividends. This tends to be indicative of a company whose earnings are relatively predictable.
Since we all need gas and electricity, this isn’t a complete surprise. And since power demand is only likely to increase going forward, there’s surely a good chance of this trend continuing…
