5 UK Dividend Growth Stocks to Consider

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1. NatWest Group plc (NYSE:NWG)

5-Year Dividend Growth Rate: 57.92%

Number of Hedge Fund Holders: 21

NatWest Group plc (NYSE:NWG) is a top UK dividend growth stock to consider. On July 9, Morgan Stanley analyst Alvaro Serrano reiterated a Hold rating on NatWest Group plc (NYSE:NWG) and hiked the price target to 740 GBp from 700 GBp.

Earlier on June 24, Berenberg reiterated a Buy rating for the banking and financial services company. According to the research firm, the company’s return profile and profitability resilience remain underappreciated. That’s in part because its revenues are driven in the near term by structural hedge. Additionally, growth in loans and deposits is increasingly supporting growth as asset quality remains robust.

NatWest’s long-term outlook is also positive amid expectations of potential increases in policy rates. In the first quarter, it demonstrated resilience, with earnings per share up 15.5% and an attributable profit of £1.4 billion. The company started the year on the right footing, underpinned by healthy customer activity and growth across all three businesses. The solid fundamentals have been the catalyst behind the 57.92% compound annual growth rate in dividends over the past five years.

NatWest Group plc (NYSE:NWG) is a major UK-centered banking and financial services company. It serves over 20 million customers across three core areas: Retail Banking (personal accounts, mortgages, and loans), Commercial Banking (business funding), and Private Banking (wealth management).

While we acknowledge the potential of NWG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NWG and that has 100x upside potential, check out our report about the cheapest AI stock.

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