RPM International Inc. (NYSE:RPM) Demonstrates Dependable Dividend Strength

For investors looking for dependable income, dividend investing stays a key method for creating lasting wealth. One organized method uses filters to find companies that provide good dividends and also show strong core business qualities. This process aims to find stocks with high dividend scores while keeping good earnings and financial strength measures, making sure payouts can continue instead of following the highest yields that could point to business problems. RPM INTERNATIONAL INC (NYSE:RPM) appears as a strong option using this careful filtering method, deserving a detailed look for portfolios centered on income.

Dividend Dependability and Increase

RPM International makes a strong argument for dividend investors because of its regular payment history and maintainable distribution system. The company's dividend traits show the thoughtful mix of benefiting shareholders and keeping financial room:

• Maintainable Payout Ratio: RPM gives 38.08% of its earnings as dividends, much lower than the 80% level that could suggest future payout trouble
• Dependable History: The company has kept and raised dividends for more than ten years, showing management's dedication to shareholder returns
• Regular Dividend Increase: With a yearly dividend growth speed of 6.96%, RPM beats inflation and gives rising income
• Good Yield: The present yield of 1.95% matches industry averages while providing better sustainability than higher-yielding but riskier options

The maintainability of RPM's dividend plan is especially important because dividend growth has been backed by stronger earnings growth, showing the company is not giving up future business spending for current shareholder payments. This thoughtful mix of giving capital back to shareholders and putting money back into the business creates the base of a lasting dividend method.

Earnings Supporting Dividend Maintainability

RPM's very good earnings measures give the basic support needed to keep and grow its dividend payments. The company shows strong operational effectiveness and returns that do much better than industry friends:

• Better Return Measures: RPM gets a notable 22.45% return on equity, doing better than 91.57% of chemical industry rivals
• Strong Asset Use: With a return on invested capital of 11.27%, the company effectively uses capital to create value
• Good Margins: The company keeps a 9.12% profit margin and 41.33% gross margin, both placed in the top group of the industry
• Margin Growth: All main margin measures have shown steady betterment in recent years, pointing to operational quality

These earnings numbers directly support dividend maintainability by making sure the company creates enough earnings to pay for dividend payments while financing future growth projects. The regularly high returns across several measures suggest RPM has competitive benefits that should allow continued dividend payments through different economic periods.

Financial Strength Supporting Long-Term Payments

RPM's good financial strength gives the steadiness needed for dependable dividend payments over many years. The company keeps a balanced capital setup and strong cash position:

• Bankruptcy Worry: An Altman-Z score of 3.97 shows very little bankruptcy fear and does better than 86.75% of industry friends
• Debt Handling: The debt-to-equity ratio of 0.87 matches industry standards while the debt-to-free-cash-flow ratio of 5.17 shows workable borrowing
• Cash Strength: A current ratio of 2.26 gives enough coverage for short-term bills, placed in the top 61.45% of the industry
• Shareholder-Friendly Moves: The company has been lowering shares available, possibly improving per-share measures including dividends

The mix of strong solvency and cash measures makes sure RPM can handle economic drops while keeping dividend payments. The company's financial strength directly supports the dividend dependability that income investors focus on in their choice rules.

Value and Growth Points

While RPM does well in dividend dependability, earnings, and financial strength, investors should think about the full view including value and growth outlook. The company trades at a price-to-earnings ratio of 21.27, about the same as industry averages but lower than the wider market. Future earnings are thought to grow at 8.42% each year, supporting continued dividend growth, though sales growth stays moderate at 4.72%. The value seems fair given the company's strong basic traits and dividend dependability.

For investors looking for more dividend stock ideas filtered using a similar method, the Best Dividend Stocks screen gives a full list of companies meeting these careful rules. The detailed fundamental analysis report for RPM gives deeper looks into the company's financial position and dividend maintainability measures.

Disclaimer: This study is based on basic data and filtering methods for information only. It does not make up investment guidance, and investors should do their own study and think about their personal money situation before making investment choices. Past results and current measures do not promise future outcomes.