RPM International (RPM) Cheers Investors With 10% Dividend Hike
RPM International Inc. RPM announced a hike of 10% in its quarterly cash dividend. This marks the 50th consecutive year the company has increased its cash dividend. It reflects the company’s sound and stable financial position and its commitment to reward shareholders regularly.
The share price of this specialty chemicals manufacturer gained 0.07% during the trading session and 1% during the after-hour trading session on Oct 5.
RPM raised the quarterly dividend payout to 46 cents per share (or $1.84 annually) from 42 cents (or $1.68 annually). The amount will be paid on Oct 31, 2023, to shareholders of record as of Oct 18. Based on the closing price of $98.68 per share on Oct 5, 2023, the stock has a dividend yield of 1.86%.
Frank C. Sullivan, RPM Chair and CEO said, “Over the last half century, RPM has returned approximately $3.3 billion in cash dividends to its shareholders. With our entrepreneurial spirit and strategically balanced business model, I am confident we will build on our strong track record of sustainable value creation.”
Investors typically favor stocks that generate a steady income stream, making high-dividend-yielding stocks particularly attractive. Naturally, shareholders are constantly searching for companies with a history of reliable and increasing dividend payouts to invest in.
Factors Supporting Dividend Hikes
The company has been gaining from businesses strategically positioned to capitalize on heightened investments in building maintenance, infrastructure development, and the reshoring of capital projects.
Recently, RPM reported better-than-expected first-quarter fiscal 2024 results, with record-breaking sales and an all-time high in adjusted EBIT. This remarkable achievement represents the seventh consecutive quarter of setting new records in both quarterly sales and adjusted EBIT. The growth is driven by its focus on achieving the margin goals outlined in MAP 2025 and effectively utilizing its competitive advantages.
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RPM’s shares have rallied 10.7% over the past three months, outperforming the Zacks Paints and Related Products industry’s 1.9% rise. The company has benefited from a strategic business operation and the successful implementation of the MAP to Growth improvement program.
The Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) is currently pegged at $4.95, depicting 15.1% year-over-year growth. The same for fiscal 2025 reflects 14.7% year-over-year growth. Further, RPM has a long-term earnings growth rate of 14.1%, making us confident in its inherent strength. RPM currently flaunts a VGM Score of B.
Zacks Rank & Key Picks
Currently, RPM carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Construction sector are:
TopBuild Corp. BLD currently sports a Zacks Rank #1 (Strong Buy). Shares of the company have risen 37.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
BLD delivered a trailing four-quarter earnings surprise of 14.1%, on average. The Zacks Consensus Estimate for BLD’s 2023 sales and EPS indicates growth of 3.3% and 8.4%, respectively, from the previous year’s reported levels.
Sterling Infrastructure, Inc. STRL currently sports a Zacks Rank of 1. STRL delivered a trailing four-quarter earnings surprise of 14.9%, on average. Shares of the company have surged 229.9% in the past year.
The Zacks Consensus Estimate for STRL’s 2023 sales and EPS indicates growth of 3.9% and 29.4%, respectively, from the previous year’s reported levels.
Fluor Corporation FLR currently sports a Zacks Rank of 1. FLR delivered a trailing four-quarter negative earnings surprise of 5.3%, on average. Shares of the company have gained 23.6% in the past year.
The Zacks Consensus Estimate for FLR’s 2023 sales and EPS indicates growth of 12.6% and 159.8%, respectively, from the previous year’s reported levels.
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