MEDINA, Ohio - RPM International Inc. (NYSE: NYSE:RPM), a leader in specialty coatings and sealants, announced today that its board of directors has declared a quarterly cash dividend. Shareholders of record as of July 17, 2024, will receive a dividend of $0.46 per share on July 31, 2024.
This announcement follows RPM’s achievement in October 2023 when the company marked its 50th consecutive year of cash dividend increases, a milestone that less than 0.5% of U.S. public companies have reached. With this record, RPM joins a select group of 41 other companies that have achieved a longer streak of growing annual dividends, as noted by Dividend Radar. Throughout this period, RPM has distributed approximately $3.5 billion in cash dividends to its stockholders.
RPM International Inc. operates through four principal segments: consumer, construction products, performance coatings, and specialty products. The company boasts a robust portfolio of well-known brands such as Rust-Oleum, DAP, and Zinsser. RPM’s products are widely used in various applications from residential and commercial construction to the maintenance of infrastructure and historical sites.
Ranked among the Fortune 500 companies, RPM employs around 17,300 people globally. The company is recognized for its commitment to innovation and quality in the building materials industry.
This dividend declaration reflects RPM's consistent return of value to its stockholders and its strong financial position in the market. The information for this announcement is based on a press release statement from RPM International Inc.
In other recent news, RPM International has been making significant strides in its performance and strategies. The company reported record sales and earnings for the ninth consecutive quarter, primarily driven by the Construction Products Group and Performance Coatings Group. This robust performance was achieved despite volume declines in the Consumer and Specialty Products segments.
RPM International's MAP 2025 operational improvement initiatives have played a pivotal role in these achievements. BMO Capital, in its recent analysis, maintained an Outperform rating for the company and held its price target at $123, highlighting the potential for better-than-anticipated earnings per share growth, largely driven by MAP25 efficiencies and cost reductions.
The company expects flat sales in the fourth quarter, with growth in the Construction Products Group offset by challenges in other segments. However, a recovery in the Consumer segment and positive momentum in the Construction Products Group and Performance Coatings Group is anticipated in fiscal year 2025.
In terms of strategic moves, RPM International has expressed interest in acquiring PPG's North American architectural paint business and plans to invest in emerging markets and new plants in Malaysia and India.
InvestingPro Insights
In light of RPM International Inc.'s recent dividend declaration, an analysis of the company's financial health and performance metrics is essential for investors. According to real-time data from InvestingPro, RPM International Inc. has a market capitalization of $13.68 billion and is trading at a price-to-earnings (P/E) ratio of 24.37. This valuation is slightly adjusted from the last twelve months as of Q3 2024, with a P/E ratio of 24.27. Moreover, the company has shown a gross profit margin of 40.3%, demonstrating the efficiency of its operations.
InvestingPro Tips highlight that RPM International Inc. has raised its dividend for 10 consecutive years, showcasing a strong commitment to shareholder returns. Additionally, the company has maintained dividend payments for an impressive 52 consecutive years. These factors contribute to RPM's reputation as a consistent dividend-paying stock, aligning with its latest announcement of a quarterly cash dividend.
Investors looking for further insights into RPM International Inc. can find additional InvestingPro Tips that delve into aspects such as the company's free cash flow yield, price volatility, and liquidity position. In fact, there are 7 more tips available on InvestingPro, which can be accessed through the dedicated page for RPM at https://www.investing.com/pro/RPM. For those interested in a deeper analysis, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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