Yahoo Finance RPM International Inc's Dividend Analysis
Delving into RPM International Inc's Upcoming Dividend and Financial Health
RPM International Inc (NYSE:RPM) recently announced a dividend of $0.46 per share, payable on 2024-04-30, with the ex-dividend date set for 2024-04-18. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into RPM International Inc's dividend performance and assess its sustainability.
What Does RPM International Inc Do?
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RPM International Inc manufactures and sells a variety of paints, coatings, and adhesives. The firm organizes itself into four segments based on product type. The construction products group sells coatings, roofing, insulation, and other products to distributers, contractors, and end consumers globally. The performance coatings group produces coatings that are used in construction and industrial applications like floorings and corrosion control. The consumer group sells paint, finishes, and similar products to individual consumers through hardware and craft stores. The specialty products group sells a variety of products ranging from niche applications of the other groups, to marine finishes, to edible food colorings. The majority of revenue comes from North America.
A Glimpse at RPM International Inc's Dividend History
RPM International Inc has maintained a consistent dividend payment record since 1975, distributing dividends on a quarterly basis. The company has increased its dividend each year since 1975, earning it the status of a dividend aristocrat, a prestigious recognition for companies that have a history of increasing dividends annually for at least 49 years. Below is a chart showing the annual Dividends Per Share to track historical trends.
Breaking Down RPM International Inc's Dividend Yield and Growth
RPM International Inc boasts a 12-month trailing dividend yield of 1.66% and a forward dividend yield of 1.74%, indicating an expected increase in dividend payments over the next year. Over the past three years, the company's annual dividend growth rate was 5.10%, which increased to 5.40% over a five-year span. Looking at the past decade, the annual dividends per share growth rate stands at 6.60%. Considering RPM International Inc's dividend yield and five-year growth rate, the 5-year yield on cost for RPM International Inc stock is approximately 2.16%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of RPM International Inc's dividends can be gauged by examining its payout ratio. Currently, the company's dividend payout ratio is 0.39, indicating a healthy balance between paying dividends and retaining earnings for growth. RPM International Inc's profitability rank is an impressive 9 out of 10, reflecting its strong earning potential relative to peers. The company's consistent positive net income over the past decade further supports its robust profitability.
Growth Metrics: The Future Outlook
A company's growth metrics are vital for the continued payment of dividends. RPM International Inc's growth rank of 9 out of 10 suggests a promising growth trajectory. The company's revenue per share and 3-year revenue growth rate, which has averaged 10.00% per year, outperforms approximately 53.59% of global competitors. RPM International Inc's 3-year EPS growth rate of 15.30% per year also outperforms roughly 58.63% of global competitors. Lastly, the 5-year EBITDA growth rate of 11.60% further indicates the company's strong growth potential.
Concluding Insights on RPM International Inc's Dividend Fortitude
Considering RPM International Inc's consistent dividend history, solid growth rate, prudent payout ratio, and robust profitability and growth metrics, the company presents a compelling case for value investors interested in reliable dividend income. As investors anticipate the next dividend payment, it is clear that RPM International Inc's financial health and strategic positioning bode well for its ability to sustain and potentially increase its dividends in the future. Value investors seeking to discover similar dividend opportunities can explore using the High Dividend Yield Screener available for GuruFocus Premium users.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
