Wednesday tips round up: National Grid, Babcock, Kcom

1st Feb 2012 06:51

In the Times, Tempus tests the currents for National Grid. The firm's 8% dividend growth promise will expire this year, to be replaced by a 4% commitment. This will not please investors thinks TempusThe company's attempts to grow in the US are also dawdling, with National Grid finding it hard to make investments stateside worth the bother. Nevertheless, taking inflation into account the 4% promise will see dividend grow to 6.5% this year - that's not bad says Tempus. The conclusion: hold.Over at the Telegraph, National Grid gets a more sympathetic hearing. Questor thinks the sustainability of the new 4% dividend growth promise is key. If the company can maintain that, and a return on equity of 7.2%, then investors will enjoy the ride. Questor says buy.The Times maintains a hold rating on Babcock International, the military contractor, although suggests some might seek to crystallise profits after recent rises.KCom, the telecoms firm which had a trading update on Tuesday, is also a hold, Tempus asserts.BSPlease note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.