Should i sell my national grid shares

Published Mon, 20 Jul Expectations that the Bank of England could raise rates by the end of this year have increased following governor Mark Carney's speech last week.

The yields of many utility shares are well in excess of those of UK government bonds, but the gap between them have recently been decreasing significantly.

And, any further increase in the yields of gilts will likely push the dividend yields of utility shares higher by causing a sell-off in the sector.

The problems facing many utility companies are not open market (freiverkehr) of the frankfurt stock exchange to higher should i sell my national grid shares rates, as water companies are seeing their returns cut by recent regulatory reviews, electricity generators are feeling the squeeze of lower wholesale electricity prices on their margins and energy suppliers are witnessing a rise in competition from smaller competitors.

With these underlying trends, investors need to be more selective in the sector to choose companies that have assets that are coping better than others.

Compounding these problems, supply margins and customer numbers have decreased, as consumers have become more price-conscious and are more willing to switch energy suppliers. Information is provided 'as is' without any warranties.

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