Dividend Growth Stock Overview: RPM International, Inc.

Photo: Flickr.com/Daniel Oines

About RPM International Inc.

RPM International, Inc. is a multinational holding company with subsidiaries that manufacture and market coatings, sealants and specialty chemicals.  The company has 94 manufacturing facilities in 24 countries and sells products in 160 countries around the world.

RPM’s sales are divided between the industrial segment and the consumer segment.  Major brands in the industrial segment include Carboline corrosion control and fireproofing coatings, Fibergrate fiberglass reinforced plastic grating, and Stonhard and Flowcrete flooring systems.

The consumer segment markets to customers in North America, Australia, and the United Kingdom and includes major brands such as Rust-Oleum rust preventative paints and coatings, DAP caulks, sealants and patch products, and Zinsser primer-sealers, wallcovering and removal products, and mildew-resistant paints.

RPM’s name comes from the company’s heritage.  In 1947, Frank C. Sullivan founded Republic Powdered Metals to manufacture and sell a heavy-duty aluminum roof coating called Alumination.  After Sullivan died in 1971, Republic Powdered Metals was transformed into RPM, Inc., in order to create a holding company to support a more aggressive acquisition program in the paint and coatings industry.  RPM has aggressively pursued acquisitions across the industry, purchasing over 70 companies in the last decade, and 80 companies in the two decades prior to that.

The company is a member of the S&P Mid Cap 400 index and S&P’s High Yield Dividend Aristocrats index, and trades under the ticker symbol RPM.

RPM’s Dividend and Stock Split History

RPM has increased dividends since 1974.  The company traditionally announces annual dividend increases in October; the stock goes ex-dividend later in the month.

RPM has compounded its payout at an average rate of 5.9% over the last 5 years and 5.6% over the last 10 years.

RPM has paid out multiple stock dividends since increasing the cash dividend payout beginning in 1974.  There have been five 5-for-4 stock dividend payouts and six 3-for-2 stock dividend payouts.  The 5-for-4 stock dividend payouts were in October 1983, November 1984, November 1990, November 1995 and the most recent stock dividend in November 1997.  The 3-for-2 stock dividend payouts were in October 1975, October 1976, October 1977, October 1978, October 1987, and November 1992.

RPM’s Direct Purchase and Dividend Reinvestment Plans

RPM has both direct purchase and dividend reinvestment plans. The company makes the plans very favorable for investors – first, there is no fee to start investing through the plans. Second, RPM picks up all the fees associated with purchasing shares, either directly or through the reinvestment of dividends. If you’re a new investor to the plan, the minimum investment is $200. For additional investments, your minimum is $25 per purchase.

When selling shares, you’ll pay 10 cents per share sold plus a transaction fee of between $15 and $30, depending on the type of sell order you request. You’ll also pay an additional $5 to have the sales proceeds directly deposited to your account.

Helpful Links

RPM International’s Investor Relations Website

Current quote and financial summary for RPM International (finviz.com)

Information on the direct purchase and dividend reinvestment plans for RPM

Want to find out about more great dividend growth stocks?

Check out the list of current S&P Dividend Aristocrats.

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