I love my FTSE 100 dividend stocks including National Grid but was very shocked to see a share price of 868 pence this morning. Yesterday, 3rd June was National Grid's ex dividend so I fully expected a drop in the NG share price this morning. Myself and other holders of this stock predicted a 28 pence or thereabouts drop. This is the norm the day after a stock becomes ex dividend. The share price is expected to drop by 28 pence (the divi per share), however it dropped by 48 pence meaning that around 20 pence of the drop was accounted for by the market. I took a look at the FTSE 100 and was shocked to see that it too has taken a little bit of a battering this morning so this helps explain National Grid's fall away.
I am hopeful that the National Grid share price will climb in the next few weeks, perhaps to around 910 pence or thereabouts. I took the opportunity this morning to buy some more cheap shares in the stock. I bought 46 shares at 869 pence costing me £414. Unfortunately I was short of capital or I would have bought double this amount. However this helped me lower my average cost per share to 913 pence as opposed to 924 pence. I will watch the market over the next few months and look for more opportunities to add to my holding, however I do want to invest in a few other stocks too rather than put all my eggs in one basket.
My portfolio is now worth over £2000 so this is making me smile at least. Remember every cloud has a silver lining.