RPM Declares Quarterly Dividend

Rhea-AI Summary

RPM International Inc. (NYSE: RPM) has declared a regular quarterly cash dividend of $0.46 per share, payable on January 31, 2024, to stockholders of record as of January 19, 2024. The company recently increased its cash dividend by 10% in October 2023, marking its 50th consecutive year of increased cash dividends paid to stockholders. RPM is in an elite category, with less than half of 1 percent of all publicly traded U.S. companies having achieved this. Only 41 other U.S. companies have consecutively paid an increasing annual dividend for a longer period of time, according to Dividend Radar. The company has returned approximately $3.3 billion in cash dividends to its stockholders.

Insights

Financial Analyst

The declaration of a regular quarterly cash dividend by RPM International Inc. is a testament to the company's consistent financial performance and commitment to shareholder returns. The dividend of $0.46 per share, while seemingly modest, is significant when considering the company's history of dividend increases. RPM's track record of increasing dividends for 50 consecutive years is a remarkable achievement that not only demonstrates financial resilience but also a shareholder-friendly corporate policy.

This milestone places RPM in a rarified group of companies known as 'Dividend Aristocrats,' which are known for their reliable and increasing dividends over time. Such a status can attract a particular investor base that prioritizes stable income, potentially increasing stock demand and thus positively influencing the stock price. However, investors should consider the payout ratio, which indicates the proportion of earnings paid out as dividends, to assess the sustainability of these payments in the long term.

Market Research Analyst

From a market research perspective, RPM International Inc.'s dividend increase is a strong signal to the market regarding its financial health and future prospects. Investors often view consistent dividend growth as an indicator of a company’s confidence in its future cash flows. The ability to pay increasing dividends is typically supported by robust and stable earnings, which can be a positive sign for the company's underlying business operations.

It's important to note that RPM's performance in this area is exceptional, with less than half of 1 percent of all publicly traded U.S. companies achieving such a long streak of dividend growth. This could enhance RPM's attractiveness as an investment, particularly in comparison to its peers. However, it is also crucial for investors to analyze the company's capital allocation strategy to ensure that sufficient investment is being made for future growth and that dividend payments are not compromising the company's ability to innovate and expand.

Economist

An economist's viewpoint would highlight the broader economic implications of RPM International Inc.'s dividend announcement. The company's ability to consistently increase dividends may reflect not only its financial stability but also the strength of the economy and the sector in which it operates. This could indicate a favorable business environment and consumer demand patterns that support sustained corporate earnings.

However, macroeconomic factors such as interest rate changes, inflation and economic cycles can affect dividend sustainability. In periods of economic downturn, companies might face pressure to maintain such dividends, potentially impacting their financial flexibility. Investors should be aware of these external economic factors when considering the long-term reliability of dividend payments from companies like RPM.

MEDINA, Ohio--(BUSINESS WIRE)-- RPM International Inc. (NYSE: RPM) today announced that its board of directors declared a regular quarterly cash dividend of $0.46 per share, payable on January 31, 2024, to stockholders of record as of January 19, 2024.

RPM’s last cash dividend increase of 10% in October 2023 marked RPM’s 50th consecutive year of increased cash dividends paid to its stockholders, which places RPM in an elite category of less than half of 1 percent of all publicly traded U.S. companies. Only 41 other U.S. companies, besides RPM, have consecutively paid an increasing annual dividend for a longer period of time, according to Dividend Radar. During this timeframe, the company has returned approximately $3.3 billion in cash dividends to its stockholders.

About RPM

RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services. The company operates across four reportable segments: consumer, construction products, performance coatings and specialty products. RPM has a diverse portfolio of market-leading brands, including Rust-Oleum, DAP, Zinsser, Varathane, DayGlo, Legend Brands, Stonhard, Carboline, Tremco and Dryvit. From homes and workplaces to infrastructure and precious landmarks, RPM’s brands are trusted by consumers and professionals alike to help build a better world. The company employs approximately 17,300 individuals worldwide. Visit www.RPMinc.com to learn more.

For more information, contact Matt Schlarb, Senior Director – Investor Relations, at 330-220-6064 or mschlarb@rpminc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240103243847/en/

Matt Schlarb

Senior Director – Investor Relations

330-220-6064

mschlarb@rpminc.com

Source: RPM International Inc.

FAQ

What is the dividend amount declared by RPM International Inc. (NYSE: RPM)?

RPM International Inc. (NYSE: RPM) declared a regular quarterly cash dividend of $0.46 per share.

When is the dividend payable to stockholders of RPM International Inc. (NYSE: RPM)?

The dividend is payable on January 31, 2024, to stockholders of record as of January 19, 2024.

How much cash dividends has RPM International Inc. (NYSE: RPM) returned to its stockholders?

RPM International Inc. (NYSE: RPM) has returned approximately $3.3 billion in cash dividends to its stockholders.

How does RPM International Inc. (NYSE: RPM) compare to other U.S. companies in terms of dividend payments?

RPM International Inc. (NYSE: RPM) is in an elite category, with less than half of 1 percent of all publicly traded U.S. companies having achieved 50 consecutive years of increased cash dividends paid to stockholders.