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RPM International Boosts Dividend by 10.9% for 51st Consecutive Year
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RPM International Inc. (RPM - Free Report) announced a hike of 10.9% in its quarterly cash dividend payout to 51 cents per share (or $2.04 annually) from 46 cents (or $1.68 annually). The amount will be paid on Oct. 31, 2024, to shareholders of record as of Oct. 18. Based on the closing price of $127.30 per share on Thursday, the stock has a dividend yield of 1.44%.
This marks the 51st consecutive year that the company has raised its cash dividend. Remarkably, this achievement puts RPM in an elite group, representing less than 0.5% of all publicly traded companies in the United States. According to Dividend Radar, only 41 other U.S. companies, along with RPM, have consistently increased their annual cash dividends for a longer period. This highlights the company's strong financial foundation and its ongoing commitment to rewarding shareholders.
Since investors typically favor stocks that generate a steady income stream, high-dividend-yielding stocks are particularly attractive. Naturally, shareholders constantly search for companies with a history of reliable and increasing dividend payouts to invest in.
The successful implementation of MAP 2025 operational improvement initiatives, focus on repair and maintenance demand and capture of new growth opportunities helped RPM generate record profitability and cash flow.
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 2025 results, with strong earnings on the back of record adjusted EBIT for the 11th consecutive quarter and reduced interest expense. For the fiscal second quarter, RPM expects continued growth in high-performance building construction and renovation but softness in residential end markets.
Image Source: Zacks Investment Research
RPM’s shares have gained 11.6% in the past month, outperforming the Zacks Paints and Related Products industry’s 6% growth. The company has benefited from a strategic business operation and the successful implementation of the MAP 2025 operational improvement initiatives.
The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) is currently pegged at $5.51, indicating 11.1% year-over-year growth. The estimate for fiscal 2026 indicates 12.3% year-over-year growth. Further, RPM has a long-term earnings growth rate of 12.1%, making us confident about its inherent strength. It currently has a Growth Score of A.
RPM’s Zacks Rank & Key Picks
RPM International currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader construction sector are:
Latham Group, Inc. (SWIM - Free Report) : Based in Latham, NY, the company stands as the leading designer, manufacturer and marketer of in-ground residential swimming pools and pool accessories. It presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SWIM has seen an upward estimate revision for 2024 EPS to 13 cents from break-even over the past 60 days. The estimated figure indicates 750% year-over-year growth.
Armstrong World Industries, Inc. (AWI - Free Report) : Based in Lancaster, PA, Armstrong World is a leading global manufacturer of ceiling systems primarily for commercial, institutional and residential building construction and renovation. It presently carries a Zacks Rank #2 (Buy).
AWI has seen an upward estimate revision for 2024 EPS to $6.07 from $6.02 over the past 60 days. The estimated figure indicates 14.1% year-over-year growth.
Frontdoor, Inc. (FTDR - Free Report) : Based in Memphis, TN, this company provides home warranties in the United States. It presently carries a Zacks Rank of 2.
FTDR has seen an upward estimate revision for 2024 EPS to $2.79 from $2.70 over the past 60 days. The estimated figure indicates 21.3% year-over-year growth.
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RPM International Boosts Dividend by 10.9% for 51st Consecutive Year
RPM International Inc. (RPM - Free Report) announced a hike of 10.9% in its quarterly cash dividend payout to 51 cents per share (or $2.04 annually) from 46 cents (or $1.68 annually). The amount will be paid on Oct. 31, 2024, to shareholders of record as of Oct. 18. Based on the closing price of $127.30 per share on Thursday, the stock has a dividend yield of 1.44%.
This marks the 51st consecutive year that the company has raised its cash dividend. Remarkably, this achievement puts RPM in an elite group, representing less than 0.5% of all publicly traded companies in the United States. According to Dividend Radar, only 41 other U.S. companies, along with RPM, have consistently increased their annual cash dividends for a longer period. This highlights the company's strong financial foundation and its ongoing commitment to rewarding shareholders.
Since investors typically favor stocks that generate a steady income stream, high-dividend-yielding stocks are particularly attractive. Naturally, shareholders constantly search for companies with a history of reliable and increasing dividend payouts to invest in.
The successful implementation of MAP 2025 operational improvement initiatives, focus on repair and maintenance demand and capture of new growth opportunities helped RPM generate record profitability and cash flow.
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 2025 results, with strong earnings on the back of record adjusted EBIT for the 11th consecutive quarter and reduced interest expense. For the fiscal second quarter, RPM expects continued growth in high-performance building construction and renovation but softness in residential end markets.
Image Source: Zacks Investment Research
RPM’s shares have gained 11.6% in the past month, outperforming the Zacks Paints and Related Products industry’s 6% growth. The company has benefited from a strategic business operation and the successful implementation of the MAP 2025 operational improvement initiatives.
The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) is currently pegged at $5.51, indicating 11.1% year-over-year growth. The estimate for fiscal 2026 indicates 12.3% year-over-year growth. Further, RPM has a long-term earnings growth rate of 12.1%, making us confident about its inherent strength. It currently has a Growth Score of A.
RPM’s Zacks Rank & Key Picks
RPM International currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader construction sector are:
Latham Group, Inc. (SWIM - Free Report) : Based in Latham, NY, the company stands as the leading designer, manufacturer and marketer of in-ground residential swimming pools and pool accessories. It presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SWIM has seen an upward estimate revision for 2024 EPS to 13 cents from break-even over the past 60 days. The estimated figure indicates 750% year-over-year growth.
Armstrong World Industries, Inc. (AWI - Free Report) : Based in Lancaster, PA, Armstrong World is a leading global manufacturer of ceiling systems primarily for commercial, institutional and residential building construction and renovation. It presently carries a Zacks Rank #2 (Buy).
AWI has seen an upward estimate revision for 2024 EPS to $6.07 from $6.02 over the past 60 days. The estimated figure indicates 14.1% year-over-year growth.
Frontdoor, Inc. (FTDR - Free Report) : Based in Memphis, TN, this company provides home warranties in the United States. It presently carries a Zacks Rank of 2.
FTDR has seen an upward estimate revision for 2024 EPS to $2.79 from $2.70 over the past 60 days. The estimated figure indicates 21.3% year-over-year growth.