Setting material on UDynamicMeshComponent

Have you took a look at ADynamicMeshActor?
It’s constructor sets up Material for UDynamicMeshComponent in the following way:

DynamicMeshComponent->SetMaterial(0, UMaterial::GetDefaultMaterial(MD_Surface));

See: Engine/Source/Runtime/GeometryFramework/Private/DynamicMeshActor.cpp#L13-L26

There is no more Material manipulation code in said Actor so I suspect that you have to manipulate it at runtime on your own.