Where does RPM International rank after its 9% announced dividend increase?

rpm

RPM International Inc. (RPM) announced a regular quarterly dividend of $0.30, a 9 percent increase from the prior rate of $0.275 per share. The dividend will be paid at the new higher rate on October 31, 2016, to shareholders of record at close of business on October 17, 2016. RPM International Inc. is currently priced at $49.18.

Listed in the table below are the quarterly dividend payments since 2010. Our analysis of RPM International Inc. as a Top 100 Dividend Stock candidate is listed below;

Date Quarterly Dividend
10/17/2016 0.3
7/14/2016 0.275
4/14/2016 0.275
1/13/2016 0.275
10/15/2015 0.275
7/9/2015 0.26
4/9/2015 0.26
1/8/2015 0.26
10/16/2014 0.26
7/9/2014 0.24
4/9/2014 0.24
1/9/2014 0.24
10/17/2013 0.24
7/10/2013 0.225
4/10/2013 0.225
12/13/2012 0.225
10/11/2012 0.225
7/11/2012 0.215
4/11/2012 0.215
1/11/2012 0.215
10/13/2011 0.215
7/13/2011 0.21
4/11/2011 0.21
1/12/2011 0.21
10/14/2010 0.21
7/14/2010 0.205
4/14/2010 0.205
1/13/2010 0.205

Analysis of RPM International Inc. is based upon our five key criteria for the Top 100 list, which include; 

Category Value Score
Dividend Yield 2.19% 259
Dividend Growth (3-6 year avg) 6.8% 278
Forward P/E 16.07 122
S&P Financial Rating B+ 200
Beta 1.10 150
Total Score   1,009

Additional Information;

% Yield 3 Year Div. Growth Rate 6 Year Div. Growth Rate SPS 2016 P/S Ratio 10 yr P/S Low 10 yr P/S High 5 yr max Yield % 5 yr lowest Yield %
2.19% 8.13% 5.45% 36.21 1.36 0.33 1.36 4.15% 1.90%

Final Analysis;

  • RPM Int’l’s dividend yield is slightly above the average of the S&P 500 Index but is trading at the lower end of its average historical dividend yield.
  • RPM Int’l maintains a 3 year dividend growth rate of 8%.
  • RPM Int’l has paid out a dividend consecutively for the past 42 years.
  • RPM Int’l is trading at a modest forward P/E ratio but above its average price/sales (P/S) range.  From a relative valuation perspective based upon P/S, RPM Int’l is overvalued.
  • RPM Int’l maintains a credit rating of B+. This is below investment grade, a negative.
  • RPM Int’l maintains a beta of 1.10, higher than the average company.

Based upon its poor financial rating, lower than average yield, high P/S ratio, and the above-average beta, RPM International does not qualify as one of our Top 100 Dividend Stocks.

RPM International Inc. Dividend Yield Chart (Click to enlarge) rpm1

Chart Explanation:  Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.

Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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