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By Christine Benz | 04-09-2010 08:00 AM

A Dividend Pick Across the Pond

Day 5: This utility could be raising its dividend by 5%-8% a year, for many years to come, says Morningstar's Josh Peters.

Christine Benz: Hi, I'm Christine Benz for Morningstar.com. You have until April 15 to fund an IRA for the 2009 tax year. So, all this week, we'll be talking to some of Morningstar's experts to get their best ideas for funding an IRA.

I'm here today with Josh Peters. Josh is editor of Morningstar DividendInvestor, and he's Morningstar's resident dividend guru guy. So Josh, thanks for being here.

Josh Peters: [laughs] Happy to be here. Somebody has to be the dividend guru guy, right?

Benz: So, Josh, you've got an income centric pick, as usual. What's your best idea, and why do you like it?

Peters: Well, I don't have a whole lot of good ideas to pick from right now. Markets have come up a lot.

Benz: Market's kind of rich...

Peters: And dividend yields are hard to find. But by poking my head outside of the U.S., I have one company that I like quite a bit. It's called National Grid. Ticker symbol is NGG. They are kind of an interesting mix of utilities.

They operate all regulated utilities, just transmission and distribution, no generation, or energy exploration, or anything like that. But it's got a roughly 50/50 split between utilities in the northeastern United States and in the U.K., where they operate the national electricity grid.

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