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RPM: 39-years of Raises

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October 04, 2012 – Comments (0) | RELATED TICKERS: RPM

RPM International (RPM) stretched its string of consecutive, annual dividend hikes to 39 years today.

The holding company for Rust-o-leum, DAP and a number of other consumer and industrial coatings, flooring, sealant, and specialty chemical brands bumped the quarterly payout by a penny.  It's a small raise, only a 4.7% increase - more than gov't reported inflation reports, but less than the rate of rising gas prices in CA.  The new yield is around 3.3%.

The stock isn't a screaming buy at 16.5 times trailing earnings, 13 times next year's estimate.  The product mix should make it a decent proxy for construction both in and out of the US. 

Investors can expect to see acquistions of smaller companies.  The latest quarterly lists three acquisitions.  Not sure how a nail polish company will fit in the mix of brands, but now they've got one.  The other two are a US deck and concrete restoration products company and a Brazilian building materials company.

Disclosure:  Long RPM.  At this price, I'm not looking to add.  Not looking to sell either.

Russ

 

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