This Stock Is the Dividend Aristocrat's Aristocrat | RPM Message Board Posts


RPM International Inc.

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Msg  15 of 17  at  10/5/2023 2:28:28 AM  by

jerrykrause


This Stock Is the Dividend Aristocrat's Aristocrat

 

This Stock Is the Dividend Aristocrat's Aristocrat

. 
; New York.
 
 

Shares of RPM International are surging as the company is on the cusp of a truly impressive milestone.

RPM (ticker: RPM) stock jumped 5.7% to $98.09 in late trading Wednesday, while the S&P 500 and Dow Jones Industrial Average added 0.6% and 0.2%, respectively.

Comments from CEO Frank Sullivan ahead of a Thursday shareholder meeting appear to be driving the gains: He talked about another dividend hike. That would mark 50 consecutive years of dividend increases.

To be considered a dividend aristocrat , companies have to raise annual dividends for 25 consecutive years. At 50 consecutive years, RPM is an aristocrat's aristocrat.

RPM isn't a household name, but some of its brands are. It makes Rust-Oleum spray paint, for instance. It's a chemical and coatings giant, generating some $7 billion in annual sales.

RPM stock pays 42 cents a quarter, or $1.68 a year currently. The stock yields about 1.7%.

Dividends compound. So $1,000 in the S&P 500 invested for 50 years is worth about $150,000, while $1,000 invested in RPM over the same time frame would be worth about $1.15 million, Sullivan added.

"While this indeed is an impressive [dividend] factoid, we frankly more appreciated the company's performance in fiscal first quarter 2024 where it posted 12% operating profit growth to post record fiscal first-quarter results," wrote Fermium analyst Frank Mitsch in a Wednesday report. "Despite today's positive market reaction, the shares are essentially flat year to date…so there's seemingly scope for catch-up."

Mitsch rates shares Hold and has a $100 price target for the stock. Rising oil prices, which are an input cost for RPM, are a risk.

The rest of Wall Street essentially agrees. About 38% of analysts covering the stock rate shares Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for RPM is about $108 a share, according to FactSet.

This might not be the exact right time to buy RPM shares, but its dividend history shows that it's a good stock to keep on investors' radar screens.

 


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