Published on 11 Jul 2023 on Insider Monkey via Yahoo Finance

10 UK Dividend Growth Stocks to Consider

In this article, we will take a look at the 10 UK dividend growth stocks to consider. To see more such companies, go directly to 5 UK Dividend Growth Stocks to Consider.

While investors in the US cheer the start of a bull market, those in the UK have been under pressure amid data pointing to stubborn inflation and new interest rate hikes. Annual U.K. headline consumer price inflation in May came in at 8.7%, unchanged from April. Analysts were expecting inflation of about 8.4%.  Core inflation — excluding energy and food — increased to 6.5% from 6.2%.  As a result, the Bank of England raised interest rates from 4.5% to 5%. The bank is expected to continue the rate hikes, which could push the UK economy into recession, according to a latest analysis from Bloomberg Economics. Economists Dan Hanson and Ana Andrade from Bloomberg Economics expect recession to hit the UK if the country goes ahead with a rate hike in November.

“The big risk to our forecast is that the BoE tightens by more than we have assume. In a world where it followed market expectations, which is about 100 bps higher on average over the next three years compared to our forecast, we would expect the economy to be about 1% smaller by 4Q25 with a deeper recession,” the economists said.