CRH plc stands as a reputable entity in the financial markets due to its consistent dividend history spanning 38 years without a recent suspension. With a dividend yield of 1.47%, it offers investors moderate but stable returns. The company's earnings and free cash flow-based payout ratios are conservative, suggesting a sustainable dividend practice.
CRH operates within a highly competitive sector, offering investors a modest dividend yield complemented by prudent financial management.
| Sector | Dividend yield | Current dividend per share | Dividend history | Last cut or suspension |
|---|---|---|---|---|
| Materials | 1.47% | 1.48 USD | 38 years | None |
The length and consistency of CRH's dividend history are key indicators of the company's financial health and its commitment to return capital to shareholders. This track record is appealing to income-focused investors.
| Year | Dividend per share (USD) |
|---|---|
| 2026 | 0.78 |
| 2025 | 1.48 |
| 2024 | 1.40 |
| 2023 | 2.36 |
| 2022 | 2.20 |
Assessing the dividend growth rate provides insights into the company's ability to enhance shareholder value over time. It is crucial for those investors looking for both income and capital appreciation.
| Time | Growth |
|---|---|
| 3 years | -0.12% |
| 5 years | 0.10% |
The average dividend growth is 0.10% over 5 years. This shows moderate but steady dividend growth.
Payout ratios provide a snapshot of how comfortably a company can pay out its dividends. Lower payout ratios are typically a sign of financial prudence.
| Key figure | Ratio |
|---|---|
| EPS-based | 19.57% |
| Free cash flow-based | 34.35% |
With an EPS payout ratio of 19.57% and a free cash flow ratio of 34.35%, CRH is in a strong position to maintain its dividend payments, indicating a healthy cushion between earnings and dividend distribution.
Analyzing CRH's cashflow metrics and capital efficiency reveals efficiency in deploying assets and generating cash flows.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 5.89% | 3.75% | 3.47% |
| Earnings Yield | 5.72% | 5.28% | 4.44% |
| CAPEX to Operating Cash Flow | 35.90% | 51.22% | 48.23% |
| Stock-based Compensation to Revenue | 0.35% | 0.36% | 0.38% |
| Free Cash Flow / Operating Cash Flow Ratio | 64.10% | 48.78% | 51.77% |
The cashflow metrics indicate robust cash generation and efficient capital deployment, underpinning CRH's ability to fund its dividends and capital investments.
An effective balance sheet and leverage analysis can highlight a company's financial health and long-term sustainability. Key ratios help identify the leverage used by CRH.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 0.62 | 0.71 | 0.82 |
| Debt-to-Assets | 0.27 | 0.30 | 0.34 |
| Debt-to-Capital | 0.38 | 0.41 | 0.45 |
| Net Debt to EBITDA | 1.11 | 1.63 | 2.09 |
| Current Ratio | 1.69 | 1.37 | 1.74 |
| Quick Ratio | 1.26 | 0.91 | 1.14 |
| Financial Leverage | 2.28 | 2.34 | 2.43 |
CRH's leverage metrics are within comfortable bounds, indicating prudent financial management and an ability to meet debt obligations efficiently.
The profitability and fundamental strength of CRH provide insights into operational efficiency and the effectiveness of its management strategies.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 0.151 | 0.160 | 0.155 |
| Return on Assets | 0.066 | 0.068 | 0.064 |
| Margins: Net | 9.02% | 9.72% | 9.96% |
| Margins: EBIT | 12.56% | 14.97% | 14.21% |
| Margins: EBITDA | 17.23% | 20.03% | 19.97% |
| Margins: Gross | 34.23% | 35.71% | 36.13% |
| R&D to Revenue | 0% | 0% | 0% |
The profitability measures, such as return on equity and operating margins, show CRH's solid position as a profit-generating entity.
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 2 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
CRH plc offers a stable dividend profile suited for conservative income investors seeking moderate growth. The company's prudence in maintaining a solid payout ratio alongside its historical dividend consistency positions it as a reliable choice. With robust financial health, CRH can sustain its dividend commitments, making it a viable addition to a diversified portfolio focused on steady income.
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