National Grid dividend: cash cover and yield
National Grid’s latest dividend is £0.4849 per share, while free cash flow was negative in every year across the five years ending March 2026. In FY2026, free cash flow was -£4,823 million and dividends paid were £1,623 million, so free cash flow did not cover the dividend.
How much does National Grid pay per share?
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| − Dividends paid, per share | 32.65 | 32.33 | 42.86 | 40.45 | 23.59 |
| − Share buybacks, per share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| = Paid out more than FCF, per share | 129.67 | 128.50 | 99.23 | 94.16 | 54.90 |
Does National Grid cover its dividend with cash?
Free cash flow is the cash left after operating needs and capital spending under the company’s definition. It was negative in every year across the five years ending March 2026. The annual deficit reached £4,823 million in FY2026, and dividends paid added £1,623 million to the funding gap. There were no share buybacks.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Free cash flow | -4,823 | -4,548 | -2,259 | -2,134 | -1,224 |
| − Dividends paid | 1,623 | 1,529 | 1,718 | 1,607 | 922 |
| − Share buybacks | 0 | 0 | 0 | 0 | 0 |
| = Paid out more than the free cash flow | 6,446 | 6,077 | 3,977 | 3,741 | 2,146 |
| + Debt issued | 4,172 | 4,162 | 6,107 | 11,908 | 12,347 |
| − Debt repaid | 5,186 | 2,861 | 1,701 | 15,771 | 1,272 |
What could change National Grid’s dividend?
Dividends grow modestly because policy targets CPIH-linked increases, while funding pressure limits the forecast. The base case starts from the latest £0.4849 DPS and grows at 2.5%. It reaches £0.4970 in 2027 and £0.5223 in 2029. The middle figure is £0.5095. The bear case freezes DPS at £0.4849 through 2028 and reaches £0.4946 in 2029. The bull case reaches £0.5019 in 2027 and £0.5377 in 2029, with £0.5195 in between. Negative free cash flow and a planned £6bn increase in net debt explain the restrained assumptions.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 3,268 (3,023 / 3,427) | 3,545 (3,113 / 3,867) | 3,846 (3,208 / 4,363) |
| Shares (millions) | 5,082 (5,120 / 5,065) | 5,140 (5,220 / 5,105) | 5,202 (5,327 / 5,147) |
| Dividends per share | 0.50 (0.48 / 0.50) | 0.51 (0.48 / 0.52) | 0.52 (0.49 / 0.54) |
| Price to earnings | 18.00 (15.00 / 20.00) | 18.50 (14.00 / 21.00) | 19.00 (13.00 / 22.00) |
What is National Grid’s dividend yield against its share price?
Market value is the shareholders’ claim; enterprise value adds lenders’ claim and subtracts cash. Think of a house bought with a mortgage: the house is the whole asset, but the owner’s equity is what remains after the lender’s claim. At 1164.50p on 12 October 2026, National Grid’s market value was £58,538 million. Enterprise value was £101,572 million. Net debt was £44,160 million at 31 March 2026, measured on a different date and under the company’s own definition.