Defensive Utilities Eyed For Their Dividends
Fiona Cincotta June 16, 2020 4:46 PM
Utility firms will be in focus over the coming sessions as both SSE and National Grid are due to report their full year results.

Utility firms will be in focus over the coming sessions as both SSE and National Grid are due to report their full year results.
SSE said back in March that it expected a full year payout of 80p per share. However, it cautioned that this could be reconsidered if circumstances changed. However, we would expect utilities to show their strength in times like these. Whilst companies, almost across the board, have suspended dividends, it should be business as normal for the utilities.
Earnings per share have been guided to the lower end of 83p – 88p range.

National Grid
National Grid’s dividend will also be in focus when it reports on Thursday. Investors will also be looking for any clues on future payments.
Earlier this year NG said that it had not suffered any material impact from covid-19. However, it was expected to monitor the situation before announcing a final decision regarding its dividend.
Broker outlooks are mixed on the stock ahead of results. Whilst Goldman Sachs and Barclays Capital reiterated their neutral stance, both lowered their target price to 1000p and 1040p respectively. Meanwhile JP Morgan has raised its price target to 1060p.
The stock trades over its 50 sma had has just breached its 200 sma at 925p, the uptrend is still intact. A move above 100 sma at 950p could see a further leg higher.

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