These 4 Companies Just Increased Their Dividends. Not All the Raises Are Equal
Four NYSE companies raised their dividends within a single week, but a closer look at the coverage ratios, balance sheets, and business risks reveals that some of these payouts stand on far shakier ground than the headline increases suggest.
A dividend raise is the most direct cash-flow signal a board of directors can send. Four NYSE companies have sent it within roughly a week. Four companies announced higher quarterly payouts. They are RPM International (NYSE:RPM | RPM Price Prediction), Lockheed Martin (NYSE:LMT), Penske Automotive Group (NYSE:PAG) and Thor Industries (NYSE:THO). Among the reported amounts, the largest percentage raise came from RPM, which lifted its quarterly dividend from $0.54 to $0.57 per share. The four offer payout growth with moderate yields, and each raise needs to hold up against the coverage numbers, while RPM and Lockheed run on coatings and defense demand. Penske and Thor depend on auto and RV buying cycles, so their dividends carry a different kind of risk.
RPM International: Coatings Cash Flow Funds a Bigger Check
RPM declared a quarterly dividend of $0.57 per share, up from $0.54. The increase is about 5.56%. Investors who own shares before the October 20 ex-dividend date receive the new rate on October 30. The trailing yield is 2.21%. At the latest price of $100.09, the new $2.28 annualized rate yields roughly 2.28%.
Dividend safety: The trailing $2.16 in dividends uses about 39% of trailing EPS of $5.50. Fiscal first-quarter free cash flow rose 17.4% to $205 million, while the new rate costs roughly $72.7 million a quarter. Operating cash flow for fiscal 2026 was $898.7 million. The company holds $313 million in cash and $3.48 billion of shareholders’ equity against $4.75 billion of liabilities. The payout has gone up every year: $0.38 in 2021, $0.40 in 2022, $0.42 in 2023, $0.46 in 2024 and $0.51 in 2025, and now $0.57.
Bull case: Performance Coatings sales climbed 10.2% on demand from high-performance buildings, energy and infrastructure, and adjusted EPS of $1.98 beat the $1.95 estimate. Management expects fiscal 2027 sales and adjusted EBITDA to grow by a mid-single-digit percentage. The board added $700 million to the buyback program. The stock is down 10.09% over the past year and trades at 17x forward earnings. Its yield is higher than a year ago.
Risk: Construction Products, the largest segment, grew just 0.8% and absorbed $4.4 million in bad-debt charges and $6.3 million in warranty charges.
Lockheed Martin: Record Backlog Behind a Two-Decade Payout Climb
Lockheed’s board declared an increased fourth-quarter dividend on October 9, raising the payout over the prior quarter’s rate. That prior rate of $3.45 was paid for four straight quarters after the last raise from $3.30. The upcoming payment goes ex-dividend on December 1 and is paid on December 31. The trailing yield is 2.61%, with the stock at $532.64 at the last close.
Dividend safety: Trailing dividends of $13.65 per share take about 49% of trailing EPS of $28.11. Cash dividends cost $816 million in the first quarter, which comes to about $3.26 billion a year at that rate. Management guides to more than $7 billion of 2026 free cash flow, and the second quarter alone produced $2.92 billion. It carries more debt than the other three: $53.68 billion of liabilities against $8.77 billion of equity. The quarterly rate has been higher every year since early 2003, rising from $0.12 to $3.45.
Bull case: Backlog hit a record $230.4 billion after $65 billion of new orders, including a $35 billion multiyear THAAD interceptor contract. Management raised 2026 EPS guidance to $29.95 to $30.65, and the shares trade at 16x forward earnings. Global rearmament gives the dividend a demand base that does not depend on consumer spending.
Risk: Fixed-price programs can still produce charges. The first quarter included a $125 million F-16 charge. It also saw negative free cash flow of $291 million, so investors should keep an eye on the upcoming third-quarter earnings report.
Penske Automotive Group: Quarterly Raises Meet a Buyout
Penske lifted its quarterly dividend to $1.46 per share from $1.44, a raise of about 1.39%. The ex-dividend date is November 13, and payment follows on December 1. The trailing yield is 2.88%. The new $5.84 annualized rate yields about 2.75% at $212.
Dividend safety: Trailing dividends of $5.64 use about 40% of trailing EPS of $14.16. Shareholders’ equity is $5.83 billion, and the interest in Penske Transportation Solutions added $57.4 million of equity earnings in the second quarter. The raise record is the strongest in this group: the dividend rose with every quarterly payment from $0.43 in early 2021 to $1.46.
Bull case: Second-quarter revenue grew 11.1% to $8.51 billion, and adjusted EPS of $3.62 beat estimates. Toyota and Lexus acquisitions add about $2 billion in annualized revenue, and Class 8 truck orders rose 118% over the first six months. The business still depends on vehicle sales cycles, but service, parts and trucks help steady it.
Risk: Penske has agreed to be taken private by Penske Corporation and Mitsui, its two largest shareholders. If the deal closes, public holders are cashed out and the dividend stream ends. The stock is up 7.04% over the past week, so investors have already responded to the deal.
Thor Industries: Highest Yield in the Group During an RV Slump
Thor raised its quarterly dividend to $0.54 from $0.52, an increase of about 3.85%. The stock goes ex-dividend on October 27, and payment follows on November 10. The trailing yield of 3.18% is the highest of the four. The new $2.16 annualized rate yields about 3.09% at $70.
Dividend safety: This is the most stretched payout in the group. Trailing dividends of $2.08 take up about 57% of trailing EPS of $3.63. Its balance sheet provides the buffer. Thor holds $482 million in cash against fiscal 2026 dividend payments of $108.8 million. Total liabilities fell 44% to $1.55 billion, against $4.26 billion of equity. The dividend record shows annual increases going back at least 13 years.
For the bull case, the stock trades at 0.876 times book value, against book value of $82.56 per share. Management is aiming more than $100 million in annualized savings, European sales rose 5% in the fourth quarter, and $264.2 million remains on the buyback authorization. If RV retail demand recovers, those cost cuts would lift earnings quickly.
Risk: The RV downturn is still hurting earnings. Fourth-quarter net income fell 67.5%, gross margin contracted 230 basis points to 12.4%, and management deferred fiscal 2027 guidance.
Which of These Raises Rests on the Firmest Footing
RPM and Lockheed back their raises with payout ratios under half of earnings, growing free cash flow and long records of annual increases. Their income depends on infrastructure and defense budgets more than on consumer spending. Thor offers the highest yield but has the thinnest earnings coverage, so its dividend relies on its financial buffer while the RV cycle works itself out. Penske has the longest run of quarterly raises, but the take-private agreement means its payments are likely to end once the deal closes.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
