RPM International's MAP 2025 Strategy Sparks 5.9% Dividend Hike

RPM International Inc. RPM has been following an incremental dividend policy since 1974. In line with this strategy, it recently boosted its investors’ sentiments again with a quarterly dividend hike, marking its 52nd consecutive year of cash dividend increase.

The board of directors approved a quarterly cash dividend payout of 54 cents per share ($2.16 per share annually), representing a 5.9% increase from the previous dividend payout of 51 cents ($2.04 per share annually). The amount will be paid out on Oct. 31, 2025, to shareholders of record as of Oct. 20. Based on the closing price of $116.27 per share on Thursday, the stock has a dividend yield of 1.9%.

The company was able to facilitate this decision based on the benefits realized from the efficient execution of its MAP 2025 operational improvement program and robust top-line growth in its first quarter of fiscal 2026.

What Bolstered RPM’s Dividend Hike?

RPM has been focusing on its MAP 2025 operational improvement program, which officially concluded on May 31, 2025. Through this strategic initiative, the company was able to reduce costs and improve working capital efficiency, resulting in annualized savings of approximately $185 million, which supported adjusted EBIT growth across the business. These benefits have continued into fiscal 2026, which has been the primary driver of this dividend hike.

Additionally, the robust sales growth during the first quarter of fiscal 2026 has also contributed to the success of this strategic move. RPM highlighted that the successful integration of its business acquisitions was one of the primary drivers of the sales boost. During the fiscal first quarter, RPM witnessed record sales of $2.11 billion, indicating 7.4% year-over-year growth. Also, adjusted EBIT grew 2.9% compared with the prior year to $337.8 million.

The improved profitability and working capital efficiency, mainly attributable to the MAP 2025 initiative, have resulted in a stable and sufficient balance sheet position for RPM since the start of fiscal 2026. As of Aug. 31, 2025, the company had cash and cash equivalents of $297.1 million, up from $231.6 million as of Aug. 31, 2024. Moreover, during the first quarter of fiscal 2026, the company returned $82 million to its shareholders through cash dividends and share repurchases, reflecting 7.4% year-over-year growth.

The company is optimistic that its focus on product diversification, accretive buyouts and operational excellence is expected to further boost its financial position and ensure shareholder value. Even though the market remains unstable and inflation persists, RPM is well-positioned to counter these headwinds in the upcoming period.

RPM Stock Price Performance

Shares of this manufacturer and marketer of a diverse portfolio of specialty chemical products have gained 2.5% in the past three months against the Zacks Chemical - Specialty industry’s 2.4% decline.

The company’s trailing 12-month return on equity (ROE) is indicative of its growth potential and focus on maintaining shareholder value. Its ROE of 24.2% compares favorably with the industry’s 18.7%, indicating greater efficiency in utilizing shareholders’ funds than its peers.

RPM’s Zacks Rank & Key Picks

RPM International currently carries a Zacks Rank #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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