Covered, lightly levered, regular dividend raised every year. CRH declared $996 million of dividends against $2,912 million of free cash flow in 2025, net debt is 1.9 times EBITDA, and the regular quarterly rate rose to $0.39 in 2026. The 1.78% trailing yield on regular distributions clears the 1% line and every check passes, so the card is graded good. Specials are excluded from the yield and the history.
Key risk: Construction cycles on both sides of the Atlantic: aggregates demand follows public and private spending, and the acquisition pace adds debt in dear years.
Changes if: Free cash flow payout rises above 60%, or net debt/EBITDA crosses 3x.
- ✓Cash-flow cover 34.2% of FY2025 free cash flow, pass (<60%).
- ✓Leverage About 1.9x on reconstructed EBITDA, pass (<3x).
- ✓Dividend history Regular quarterly rate $0.35 in 2024, $0.37 in 2025, $0.39 in 2026, raised every year; 2023 and 2024 totals include special elements that are excluded from the regular series.
- ✓Trap screen TTM yield 1.78% on regular distributions; no specials in the yield; not a trap pattern.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.