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RPM International Inc. Message Board

  • chatchoochoo2001 chatchoochoo2001 Sep 26, 2005 12:05 PM Flag

    Dividend Yield

    We need a dividend boost to help this stock. Since you can get a 4.2% on a 15 month CD without any risk, this stock should be paying a dividend of at least 6% considering the risk involved. Anyone agree?
    I guess we could have had another 1% if they hadn't done the compensation boost for the "high performers" last year.

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    • I think it is likely the share price will go to @ 21 within a year. Could be more if asbestos litagation moves. I just got a bunch of cash ready to make a purchase- looks like it is time to buy now!

    • Good luck. I doubt we will get down to 16. That would be another 7% or so down from where we are, too big a drop.

    • I'm waiting to see if it hits 16. Anything below is back-up the truck time. Seems there is a lot of pessimism in the markets overall right now, so things may get very attractive before long. I'm kinda a chicken- I don't try to buy the bottom, but I usually wait for things to settle down before I go. The BUY sentiment is long term like it says.

    • Maybe time to buy back in soon. 10% correction about now. Other stocks are less affected (~4-5%), so this one seems over blown right now although the raw material prices are going crazy, even if they can get the stuff. Some suppliers going "Force majoure" (sp?), which basically says, "tough luck" contracts do not apply.

    • over 9%. Maybe quite a bit over-- hard to calculate exactly.
      This has been a great investment, especially because I've been able to buy on some fairly large dips. The price may go down from here, I'm not sure that wouldn't be a good thing since I'd love to pick-up a bunch of shares on the cheap.
      The next major positive for this company would be the asbestos reform- waiting for congress to act, even in a situation as obvious as this one, requires patience. It seems there isn't much time for doing good things for the country when political posturing requires 23 hours and 59 minutes a day. End of rant-

    • RPM already has a great track record of paying and increasing dividends; one of the best in the industry. I don't think they should be obligated to match current CD rates. You're forgetting the possibility of capital appreciation with stock as opposed to none with a CD. RPM will continue to raise it's dividend every year; they have the earnings and cash flows to easily support a yearly dividend increase. The dividend increases are also part of their corporate culture and the longterm shareholders have come to expect them. RPM should have a strong quarter to report on 10/6/05 and there's no doubt they'll continue to set new company records. This quarter's earnings will capture the strong summer months sales, which is RPM's peak performance period. Personally, I think RPM's just a few dollars shy of announcing another stock split. For many years, RPM split their stock on a regular basis; during one 20 year period they had 10 stock splits. I accumulated a lot of shares with the splits, optional purchases and dividend reinvestment. CD's are fine if you're unwilling to take on any risk but solid investments like RPM will far outperform CD's in the longrun.

      • 1 Reply to is3089
      • Well I agree if you held it for over 15-20 years you were in on some great stock splits or if you got in a few years ago after the asbestos announcement and the stock dropped to $8-$9 bucks you would have now doubled your money a few years later.
        But say lets take a ten year scenario, ten years ago from tomorrow:
        There have been two 5:4 stock splits that I could find in the history of the last 10 years. Dec 11, 1995 and Dec 1997.
        The stock price 10 years ago on this stock (week of Oct 2, 1995 Yahoo history mode this site)was Open $17.02, High $17.24, Low $16.70 and Close $16.81. Adjusted price (not sure adjusted to when is $7.38).

        If you took $10 ten years ago and invested in a 5% CD you would have $16.28 today, simple compounding 1 time each year 6% CD ($17.91). It would actually be more than this with daily compounding or even better with a better yield. Can you beat that considering the asbestos risk with this stock???? If so, why aren't more people buying it?
        I believe this is why stocks go down when interest rates rise, the CD's offer better competition. Probably will be a drain on all stocks as the interest rates keep going up.
        Taxes not included in these calculation.

    • Say what you want, but take this to the bank. The dividend will rise a penny to sixteen very soon AND the board of directors will announce a 5:4 stock dividend to take effect in december.

      a

 
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