Electrify your portfolio with this reliable infrastructure gem
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest.
Investing in defensive stocks typically represents a significant opportunity cost. In exchange for holding companies that offer a relatively stable financial and share price performance irrespective of the prevailing economic weather, investors have historically accepted lower total returns compared with volatile cyclical stocks that benefit from positive underlying economic growth.
Given that Questor is generally unconcerned about the potential for elevated short-term share price volatility, with our focus squarely trained on long-term returns, our bullish stance on National Grid may be somewhat surprising. After all, we are highly optimistic about the long-term outlook for the UK economy and stock market amid ongoing interest rate cuts.
However, our positive stance on the highly defensive utility company begins to make much more sense when its total return prospects are taken into account. Although its price-to-earnings ratio of 14.2 suggests there is limited scope for an upward rerating, the company's recently released full-year results show it remains on track to deliver annualised earnings per share growth of 6-8pc over the next four years. Even if its earnings multiple remains unchanged, it therefore offers relatively upbeat capital growth potential.
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South Wales Guardian
20 minutes ago
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South Wales Argus
34 minutes ago
- South Wales Argus
We will do everything we can to save Alexander Dennis jobs, vows Swinney
The company announced on Wednesday it is proposing to consolidate its UK operations at a single site in Scarborough, North Yorkshire. The decision puts 400 jobs at risk at its facility in Falkirk in another blow to the Forth Valley, which has already seen more than 400 jobs go at the Grangemouth refinery this year. Speaking at First Minister's Questions on Thursday, John Swinney said he is 'deeply concerned'. John Swinney said the Scottish Government will support jobs at Alexander Dennis (Andrew Milligan/PA) He told the chamber: 'This issue has been occupying a great deal of the focus and the attention of the Deputy First Minister and I and the UK Government ministers since we became aware of the situation over the last few weeks, and then ultimately to the decision that was announced yesterday.' He said his Government has 'supported' the manufacturer. But Scottish Labour leader Anas Sarwar accused Holyrood ministers of overlooking Scottish industry in favour of ordering buses from China, while pointing to the order from Alexander Dennis of around 160 vehicles by the publicly-owned network in Greater Manchester. In Scotland, public service buses are procured by private operators, who then run them on routes across the country. Labour leader Anas Sarwar said the Government has not supported Scottish industry (PA) Mr Swinney said state aid regulations – in the form of the UK-wide Subsidy Control Act – prevent the Government from directly procuring from a single supplier like Alexander Dennis. He quoted a joint letter from the UK and Scottish governments, which pledged to 'work closely with Alexander Dennis at this challenging time'. He added: 'That's us indicating that we're keen to do everything we can to find a way through the Subsidy Control Act provisions, so the Government can continue to operate within the law, which we must do, but also, we can support manufacturing in Scotland, which is my priority.' Responding, Mr Sarwar said: 'If John Swinney can't figure out a way to order buses in Scotland, I suggest he picks up the phone to (Greater Manchester Mayor) Andy Burnham and see how he managed to do it. Greater Manchester's Bee Network buses were made at Alexander Dennis (PA) 'Almost five times as many bus orders from Manchester.' Mr Sarwar's claim stems from the second phase of the Scottish Government's green bus initiative ScotZEB, which ordered 44 buses from Alexander Dennis. However, according to a press release from the time, 137 buses were ordered from the firm in the first phase, amounting to a total of 181. In a statement, Mr Burnham – who has visited the Falkirk site – said: 'Our iconic Bee Network buses are a bit of Scotland right here in Greater Manchester. 'We have over 160 Alexander Dennis buses criss-crossing our city-region every day – connecting our communities to opportunity. 'If Greater Manchester can invest in world-class Scottish bus manufacturing, then why can't the SNP Scottish Government?'
The Independent
38 minutes ago
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