International Paper Company (NYSE:IP) Plans $0.46 Quarterly Dividend

Key Points

• International Paper announced a quarterly dividend of $0.4625 per share, payable on September 15 to shareholders of record on August 14. The dividend implies an annualized yield of about 5.1%.
• The company’s dividend appears to be reasonably covered, with a 54.7% payout ratio; analysts expect it can still cover the annual dividend with a projected future payout ratio of 68.8%.
• International Paper recently reported mixed quarterly results, missing earnings and revenue estimates, even though revenue rose 13.4% year over year. Wall Street currently rates the stock a Moderate Buy with a consensus target price of $43.89.

International Paper Company (NYSE:IP - Get Free Report) announced a quarterly dividend on Tuesday, July 14th. Stockholders of record on Friday, August 14th will be paid a dividend of 0.4625 per share by the basic materials company on Tuesday, September 15th. This represents a c) dividend on an annualized basis and a dividend yield of 5.1%. The ex-dividend date is Friday, August 14th.

International Paper has decreased its dividend by an average of 0.0%annually over the last three years. International Paper has a dividend payout ratio of 54.7% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect International Paper to earn $2.69 per share next year, which means the company should continue to be able to cover its $1.85 annual dividend with an expected future payout ratio of 68.8%.

International Paper Price Performance

IP stock opened at $36.51 on Wednesday. The company has a market capitalization of $19.33 billion, a PE ratio of -5.74 and a beta of 0.94. The stock's 50 day moving average is $34.79 and its two-hundred day moving average is $38.08. The company has a quick ratio of 0.94, a current ratio of 1.21 and a debt-to-equity ratio of 0.55. International Paper has a 52-week low of $29.26 and a 52-week high of $56.13.

International Paper (NYSE:IP - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The basic materials company reported $0.15 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.03). The company had revenue of $5.97 billion for the quarter, compared to analyst estimates of $6.02 billion. International Paper had a negative return on equity of 0.49% and a negative net margin of 13.42%.International Paper's revenue was up 13.4% on a year-over-year basis. During the same period in the prior year, the business earned $0.17 earnings per share. Analysts predict that International Paper will post 1.38 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on IP shares. BNP Paribas Exane decreased their price objective on shares of International Paper from $44.00 to $42.00 and set an "outperform" rating for the company in a report on Wednesday, March 25th. Weiss Ratings downgraded shares of International Paper from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, April 27th. UBS Group decreased their price target on shares of International Paper from $40.00 to $32.00 and set a "neutral" rating for the company in a report on Monday, May 4th. Bank of America downgraded shares of International Paper from a "buy" rating to a "neutral" rating and set a $41.00 price objective for the company. in a research report on Tuesday. Finally, Royal Bank Of Canada cut their target price on shares of International Paper from $48.00 to $45.00 and set an "outperform" rating on the stock in a report on Friday, May 1st. Eight research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, International Paper currently has a consensus rating of "Moderate Buy" and a consensus target price of $43.89.

About International Paper

International Paper is a global producer of renewable fiber-based products, focused primarily on pulp, paper, and packaging. The company manufactures containerboard and corrugated packaging used for shipping and retail display, as well as a range of specialty papers and pulp products that serve industrial, consumer goods, and e-commerce customers. Its product portfolio is oriented toward large-scale packaging solutions, tissue and paper grades, and raw pulp for a variety of manufacturing uses.

Founded in 1898, International Paper is headquartered in Memphis, Tennessee, and is one of the largest and longest-established companies in the forest products sector.

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