Rentokil Initial PLC (RTO) A Top UK Dividend Growth Stock To Consider on North American Organic Growth

Rentokil Initial PLC (NYSE: RTO) is a top UK dividend growth stock to consider. On July 7, Goldman Sachs upgraded Rentokil Initial PLC (NYSE:RTO) to a Buy from a Neutral. The upgrade came amid expectations of sustained recovery in North American organic growth.

Improving execution in North America since the third quarter of 2025 has strengthened the company's growth outlook. Consequently, Goldman Sachs expects the North American market to help the company rebuild organic growth through 2027. Additionally, branch expansions, local sales execution, customer retention, and marketing are expected to drive further gains.

Goldman Sachs expects Rentokil Initial to return to mid-single-digit organic growth by 2027. The growth could come as a major pause in Terminix integration, as it continues to reduce operational disruption. Therefore, EBITA margins are expected to increase to 17.1% by 2027, driven by stronger revenue growth and continued cost savings.

The investment bank expects organic growth in North America to be the catalyst that pushes the stock higher. Consequently, it hiked its 12-month price target of the stock to 590 pence from 515 pence.

Rentokil Initial PLC (NYSE: RTO) is a global business services company that provides route-based pest control, commercial hygiene, and workwear services. Operating in over 90 countries—including extensive local fumigation and pest services in Kenya—it protects public health and brand reputations across various industries.

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