Sonoco Products Company (NYSE:SON) to Issue Quarterly Dividend of $0.54

Key Points

• Sonoco Products declared a quarterly dividend of $0.54 per share, payable December 10 to shareholders of record on November 10. The dividend implies an annualized payout of $2.16 and a 4.2% yield.
• The dividend appears well covered, with a current payout ratio of 33.2%; analysts expect next year’s earnings to support an estimated payout ratio of 35.1%.
• Sonoco shares rose 0.7% to $51.21. The company recently exceeded quarterly earnings and revenue estimates, reporting EPS of $1.51 and revenue of $1.89 billion, though revenue declined 1.3% year over year.

Sonoco Products Company (NYSE:SON - Get Free Report) announced a quarterly dividend on Tuesday, October 20th. Stockholders of record on Tuesday, November 10th will be paid a dividend of $0.54 per share by the industrial products company on Thursday, December 10th. This represents a $2.16 annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Tuesday, November 10th.

Sonoco Products has a dividend payout ratio of 33.2% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Sonoco Products to earn $6.16 per share next year, which means the company should continue to be able to cover its $2.16 annual dividend with an expected future payout ratio of 35.1%.

Sonoco Products Stock Up 0.7%

Shares of NYSE SON traded up $0.38 during midday trading on Wednesday, hitting $51.21. 332,645 shares of the company's stock were exchanged, compared to its average volume of 1,150,309. The firm's fifty day simple moving average is $51.82 and its 200-day simple moving average is $52.60. The company has a market cap of $5.06 billion, a PE ratio of 8.14, a P/E/G ratio of 1.28 and a beta of 0.35. Sonoco Products has a twelve month low of $38.65 and a twelve month high of $60.67. The company has a debt-to-equity ratio of 0.97, a current ratio of 0.99 and a quick ratio of 0.55.

Sonoco Products (NYSE:SON - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The industrial products company reported $1.51 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.47 by $0.04. The firm had revenue of $1.89 billion during the quarter, compared to the consensus estimate of $1.88 billion. Sonoco Products had a return on equity of 16.50% and a net margin of 8.41%. The firm's quarterly revenue was down 1.3% compared to the same quarter last year. During the same period in the prior year, the company posted $1.37 earnings per share. Research analysts predict that Sonoco Products will post 5.68 EPS for the current fiscal year.

Institutional Trading of Sonoco Products

Several institutional investors and hedge funds have recently added to or reduced their stakes in SON. Baker Ellis Asset Management LLC grew its position in Sonoco Products by 3.9% during the first quarter. Baker Ellis Asset Management LLC now owns 5,307 shares of the industrial products company's stock worth $287,000 after buying an additional 201 shares during the period. EverSource Wealth Advisors LLC increased its holdings in Sonoco Products by 11.2% in the first quarter. EverSource Wealth Advisors LLC now owns 2,476 shares of the industrial products company's stock valued at $134,000 after buying an additional 249 shares in the last quarter. WPG Advisers LLC increased its holdings in Sonoco Products by 93.1% in the first quarter. WPG Advisers LLC now owns 612 shares of the industrial products company's stock valued at $33,000 after buying an additional 295 shares in the last quarter. Hsbc Holdings PLC increased its holdings in Sonoco Products by 4.9% in the first quarter. Hsbc Holdings PLC now owns 6,373 shares of the industrial products company's stock valued at $345,000 after buying an additional 300 shares in the last quarter. Finally, PNC Financial Services Group Inc. lifted its position in shares of Sonoco Products by 3.3% during the 1st quarter. PNC Financial Services Group Inc. now owns 9,840 shares of the industrial products company's stock valued at $532,000 after acquiring an additional 314 shares during the period. 77.69% of the stock is owned by hedge funds and other institutional investors.

About Sonoco Products

Sonoco Products Company is a global packaging company headquartered in Hartsville, South Carolina. Founded in 1899 as the Southern Novelty Company, it has developed from a producer of paper cones for the textile industry into a diversified provider of packaging solutions serving consumer, industrial and commercial customers.

The company manufactures a broad range of products, including composite cans and tubes, paperboard packaging, flexible packaging, thermoformed packaging, rigid plastic containers, protective packaging and packaging components.

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