RPM International Inc.: A High-Conviction Case for Income Investors in a Dividend-Driven Era

For income-focused investors seeking a blend of stability and growth, RPM International Inc. (RPM) stands out as a rare combination of a Dividend King and a strategic innovator in high-margin industrial markets. With 51 consecutive years of dividend increases-a feat achieved by fewer than 50 U.S. companies-and a 2025 trailing twelve-month (TTM) dividend yield of 1.81%, according to RPM's 2023 10-K, RPM offers a compelling case for long-term, high-conviction investment. This analysis examines how the company's financial discipline, strategic expansion into infrastructure and sustainability, and management's execution track record position it as a top-tier income stock.

Financial Discipline and Sustained Dividend Growth

RPM's dividend growth is underpinned by decades of operational rigor and cash flow generation. As of October 2025, the company is set to pay a quarterly dividend of $0.540 per share, per StockAnalysis, reflecting a 10.93% increase in the trailing twelve-month period and a 6.69% average annual growth rate over the past three years, according to RPM's Q1 2026 release. This consistency is no accident: the Q1 2026 release also shows RPM returned $82.0 million to shareholders in Q1 2026 alone through dividends and share repurchases, even as it invests in strategic initiatives.

The company's financial strength is evident in its fiscal 2024 results, which included record net income of $588.4 million and operating cash flow of $1.12 billion, as detailed in RPM's 2024 10-K. These metrics, coupled with a debt-reduction-focused MAP 2025 program, have enabled RPM to maintain a Dividend Growth Potential Score (DGPS) that signals further upside, as noted in RPM's 2023 10-K. For income investors, this balance between payout sustainability and growth potential is rare.

Strategic Expansion into High-Margin Industrial Markets

RPM's strategic pivot to high-margin industrial markets is a key driver of its long-term value proposition. The company's 2025 strategic plan emphasizes infrastructure and sustainability, with targets such as securing 50 new specifications for corrosion-control products on publicly funded projects and boosting revenue from certified green building products by 25% year-over-year, described in the company's 2024 10-K. These initiatives align with global megatrends, including urbanization and decarbonization, which are expected to drive demand for industrial coatings and construction materials.

Recent results underscore the success of this strategy. In Q1 2026, RPM reported 7.4% year-over-year sales growth to $2.11 billion, driven by organic expansion, strategic acquisitions, and a focus on systems selling and engineered solutions, according to the Q1 2026 release. The Industrial Segment, in particular, has prioritized sustainability, with projects like a low-emission Malaysian plant noted in the 2024 10-K. Meanwhile, emerging markets in Africa and the Middle East are contributing to high-performance building projects, diversifying RPM's revenue base, per the Q1 2026 release.

Management's Execution Track Record

Frank C. Sullivan, RPM's chairman and CEO, has cemented a legacy of disciplined execution. Under his leadership, the company has achieved record adjusted EBIT in 14 of the last 15 quarters, a testament to operational excellence reported in the Q1 2026 release. The MAP 2025 program, which concluded in 2025, delivered record margins through cost optimization and working capital improvements, as outlined in RPM's 2023 10-K. Now, RPM is shifting toward growth, with a "pivot to growth" strategy that includes expanding sales teams, increasing advertising, and rebuilding its M&A pipeline, according to the Q1 2026 release.

Sullivan's emphasis on factors within RPM's control-such as margin expansion and cash flow generation-has insulated the company from macroeconomic volatility. For instance, despite a challenging 2024 environment, RPM outperformed expectations with Q1 2026 adjusted EPS of $1.88, exceeding forecasts reported in the Q1 2026 release. This track record of navigating headwinds while delivering shareholder returns is critical for income investors prioritizing stability.

Conclusion: A High-Conviction Hold for Income Investors

RPM International Inc. exemplifies the ideal income stock: a company with a proven ability to grow dividends while expanding into high-margin, high-growth markets. Its 51-year streak of dividend increases, coupled with a 2025 outlook of mid-single-digit to low-double-digit adjusted EBIT growth as presented in the 2024 10-K, provides a robust foundation for long-term investors. For those seeking a high-conviction, long-term hold, RPM's strategic alignment with global infrastructure and sustainability trends, combined with management's operational excellence, makes it a standout choice.