5 UK Dividend Growth Stocks to Consider

3. CRH plc (NYSE:CRH)

Ireland-based CRH plc (NYSE:CRH) is a building materials company. CRH plc (NYSE:CRH) trades on the London Stock Exchange but recently its shareholders approved the board’s recommendation to initiate a primary listing on the NYSE. CRH plc (NYSE:CRH) will retain a standard listing on the London Stock Exchange (LSE).

Over the past few years, CRH plc (NYSE:CRH) has consistently increased its dividend payouts.

As of the end of the first quarter of 2023, 13 hedge funds tracked by Insider Monkey had stakes in CRH plc (NYSE:CRH). The biggest stakeholder of CRH plc (NYSE:CRH) during this period was Edgar Wachenheim’s Greenhaven Associates which owns an $87.4 million stake in the company.

Here is what L1 Capital International Fund has to say about CRH plc (NYSE:CRH) in its Q3 2022 investor letter:

“During the December 2022 Quarter over 50% of the Fund’s holdings’ share prices increased by more than 10% in local currency with a number of them increasing by more than 20%. Five companies positively contributed over 0.5% (in AUD) to the Fund’s returns for the quarter which includes CRH plc (NYSE:CRH).

The share price of our building materials companies, CRH and Eagle Materials, also recovered from oversold levels in the December 2022 quarter, increasing 23% and 24% respectively (in USD), with further increases in early 2023. Mastercard’s share price also increased over 20% in the December 2022 Quarter.

During the December 2022 Quarter we took advantage of a strong recovery in share prices to further reduce our exposure to the U.S. housing market. We remain confident in the longer-term outlook for the building products companies we have invested in. That said, the rapid and substantial increase in mortgage rates will inevitably have a meaningfully negative impact on U.S. housing activity. Commercial activity remains robust and Infrastructure activity is expected to strengthen off a high base in 2023. We have therefore been selective in which sector investments we have retained, divesting Louisiana Pacific while continuing our investments in Eagle Materials and CRH.”