2 Long-Term, High-Yield Payers Announce Dividends

Riverview Bancorp, RPM International hold an overweight recommendation rating in Wall Street

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Two long-term, high-yield payers announced quarterly dividends on July 3.

Shares of Riverview Bancorp Inc. (RVSB, Financial) rose 0.85% to $8.33 on Wednesday following the announcement of the quarterly dividend of 4.5 cents per share. It will be paid on July 23 to shareholders of record as of July 12. The ex-dividend date is scheduled for July 11. The payment represents a 12.5% increase from the previous distribution.

Based on the closing price on Wednesday, the payment generates a forward dividend yield of 2.16%, topping the S&P 500 Index’s yield of 1.83%.

Riverview Bancorp paid dividends from 1994 to 2008 and from 2015 through April 23. The trailing 12-month dividend per share increased, on average, 15.4% every year over the last five years, according to the GuruFocus chart below.

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The stock has gained 14.4% year to date, underperforming the S&P 500 Index by 5.1%. The closing price on Wednesday was 52.6% above the 52-week low of $5.46 and 20% below the 52-week high of $9.99.

The market capitalization is $188.45 million, the price-earnings ratio is 10.83 versus the industry median of 12.36, the price-book ratio is 1.41 versus the industry median of 1.11 and the price-sales ratio is 3.26 versus the industry median of 3.01.

The Peter Lynch chart suggests the stock is cheap.

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Wall Street issued an overweight recommendation rating for shares of Riverview Bancorp with an average target price of $9, reflecting nearly 9% upside from the closing price on Wednesday. The overweight rating means analysts anticipate the stock will outperform either the industry or the overall market within 12 months.

Shares of RPM International Inc. (RPM, Financial) jumped 1.33% to close at $62.30 on Wednesday after the company announced it will pay a quarterly dividend of 35 cents per share on July 31 to shareholders of record as of July 16. The ex-dividend date is scheduled for July 15.

Based on the closing price on Wednesday, the Medina, Ohio-based specialty chemicals producer has a forward dividend yield of 2.26% versus the S&P 500's yield of 1.83%.

RPM International has paid dividends for 35 years. The chart below shows the trailing 12-month dividend per share increased 1.9% on average every year over the past five years.

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The stock has climbed 6% year to date, but has underperformed the S&P 500 Index by 13.5%. The closing price on Wednesday was 20% off the 52-week low of $51.95 and 9.4% below the 52-week high of $68.13.

The stock has a market capitalization of $8.11 billion, a price-earnings ratio of 37.92 versus the industry median of 18.54, a price-book ratio of 5.67 versus the industry median of 1.83 and a price-sales ratio of 1.51 compared to the industry median of 1.27.

According to the Peter Lynch chart, the stock is not trading cheaply.

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Wall Street issued an overweight recommendation rating for shares of RPM International with an average target price of $65.10, reflecting nearly 6% upside from the closing price on Wednesday.

Disclosure: I have no positions in any securities mentioned.

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