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.Image Source: Zacks Investment ResearchThe 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 PerformanceShares 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.Image Source: Zacks Investment ResearchThe 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.Image Source: Zacks Investment ResearchRPM’s Zacks Rank & Key PicksRPM International currently carries a Zacks Rank #3 (Hold).Here are some better-ranked stocks from the Basic Materials sector.Methanex Corporation MEOH currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.The company has a trailing four-quarter earnings surprise of 83.2%, on average. The stock has gained 13.7% in the past three months. The Zacks Consensus Estimate for Methanex’s 2025 sales implies growth of 4.7% while the earnings per share (EPS) indicate a decline of 0.5%, from the year-ago levels.Agnico Eagle Mines Limited AEM presently sports a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 10%, on average. The stock has moved up 40.1% in the past three months.The Zacks Consensus Estimate for Agnico Eagle Mines’ 2025 sales and EPS indicates growth of 30.6% and 68.1%, respectively, from the year-ago period’s levels.Intrepid Potash, Inc. IPI currently sports a Zacks Rank of 1. The company has a trailing four-quarter negative earnings surprise of 209.4%, on average. The stock has tumbled 20.9% in the past three months.The Zacks Consensus Estimate for Intrepid Potash’s 2025 sales and EPS indicates an increase of 3.1% and 493.3%, respectively, from the year-ago levels.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. 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(RPM): Free Stock Analysis Report Intrepid Potash, Inc (IPI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks