By Jim Mackinnon
Beacon Journal business writer
RPM International Inc. increased its dividend on Thursday — the 40th year in a row the $4 billion Medina holding company has done so.
RPM’s dividend increases 6.7 percent to 24 cents per share, payable Oct. 31 to shareholders of record Oct. 21. That works out to an annual dividend of 96 cents per share.
The company’s annual shareholders meeting took place Thursday in Strongsville, where the dividend increase was announced. The company’s subsidiaries include Rust-Oleum, DAP, Testors, Zinsser, Stonhard, Tremco and others.
RPM has said it hopes to have a $1 per-share annual dividend by fiscal 2015; the company is currently in fiscal year 2014.
RPM on Wednesday reported first-quarter 2014 net income of $103.1 million on revenue of $1.165 billion. Net income was up more than 200 percent from a year ago. For fiscal 2013 that ended May 31, RPM reported $98.6 million in net income on revenue of $4.08 billion.
The 40th annual dividend increase places RPM in an elite category of dividend-paying companies, RPM said. Just 47 other companies besides RPM have consecutively paid an increasing annual dividend for 40 years or longer, the company said, citing the latest edition of the Mergent Handbook of Dividend Achievers.
“RPM’s total return to shareholders, comprised of share price appreciation plus dividends reinvested, has outpaced the S&P 500 by 87 percent over the past 10 years and by 27 percent over the past five years, for the periods ended May 31, 2013,” Frank Sullivan, chairman and chief executive officer, said in a statement. “We are big believers in a growing cash dividend as an important element of driving value for long-term stockholders.”
RPM re-elected four directors with terms expiring in 2016: Frank C. Sullivan; Thomas C. Sullivan, chairman emeritus and retired chief executive officer of RPM; David A. Daberko, retired chairman and chief executive officer of National City Corp., and Craig S. Morford, chief legal and compliance officer of Cardinal Health Inc. Frank Sullivan is the son of Thomas Sullivan.
RPM also announced that Edward W. Moore was promoted to senior vice president, general counsel, chief compliance officer and secretary.
He previously was vice president, general counsel, secretary and chief compliance officer. Before joining RPM in 2006, he was with the law firm of Calfee, Halter & Griswold LLP.
Jim Mackinnon can be reached at 330-996-3544 or firstname.lastname@example.org