5 Best Annual Dividend Stocks To Buy Now

Below we present the list of 5 Best Annual Dividend Stocks To Buy Now. For our methodology and a more comprehensive list please see the 12 Best Annual Dividend Stocks To Buy Now.

5. CRH plc (NYSE:CRH)

Number of Hedge Fund Shareholders: 12

Annual Dividend Payout: $1.1948

CRH plc (NYSE:CRH) has grown its semi-annual dividend payments for three straight years, with them having a greater than 10% CAGR over the past five years. The building materials company has showcased reduced cyclicality and stronger resilience than more pure-play materials producers according to Citi analyst Ephrem Ravi, who has a ‘Buy’ rating on the shares. The analyst also likes the Irish’s company’s strong cash generation, which should fuel further dividend growth.

Hedge fund ownership of CRH plc (NYSE:CRH) hit an all-time high in Q2, jumping by 30% quarter-over-quarter. One of the new Q2 stakes was purchased by Edgar Wachenheim’s Greenhaven Associates, which raised its position in CRH by another 139% in Q3 to 1.79 million shares worth $57.9 million on September 30.

L1 Capital International believes the value of the current investment opportunity in CRH plc (NYSE:CRH) is a rare occurrence, as the fund discussed in its Q2 2022 investor letter:

“CRH plc (NYSE:CRH) was outlined in detail in our December 2021 Quarterly Report. Since then, the tragic war in Ukraine commenced with no signs of resolution. This war and associated sanctions on Russia have led to major disruptions to European energy markets. CRH is a relatively energy intensive business and around 20% of the Group’s operations are in Europe. We expect they will be negatively impacted by higher energy prices and reduced economic activity. Around 75% of CRH’s operations are in North America and will be less impacted compared to the European operations.

We have followed and analysed the global building products industry for nearly 25 years and the current share price of CRH presents an investment opportunity that rarely arises. CRH recently sold a business for US$3.8 billion, equating to almost 15x EBIT. In comparison, the remainder of CRH which consists of many businesses which are higher quality than the divested operation, is trading on around 9x EBIT, 11x PE, 9% free cashflow, 4% dividend yield and CRH is buying back around 3% of its shares annually. CRH has delivered shareholders a 15% return per annum, compounded over 50 years. The current share price provides compelling value for investors with a longer-term horizon.”