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

Key Points

• Sonoco Products declared a quarterly dividend of $0.54 per share, payable on September 10 to shareholders of record on August 10, with the ex-dividend date also set for August 10.
• The dividend implies an annualized payout of $2.16 per share and a 4.0% yield; the company has raised its dividend for 43 consecutive years, and the payout appears well covered by earnings.
• Despite the dividend announcement, Sonoco’s latest earnings missed estimates, and analysts currently rate the stock Hold on average with a target price of $61.33.

Sonoco Products Company (NYSE:SON - Get Free Report) declared a quarterly dividend on Wednesday, July 15th. Shareholders of record on Monday, August 10th will be given a dividend of 0.54 per share by the industrial products company on Thursday, September 10th. This represents a c) annualized dividend and a yield of 4.0%. The ex-dividend date of this dividend is Monday, August 10th.

Sonoco Products has increased its dividend by an average of 0.0%annually over the last three years and has increased its dividend annually for the last 43 consecutive years. Sonoco Products has a dividend payout ratio of 33.2% meaning its dividend is sufficiently covered by earnings. Analysts expect Sonoco Products to earn $6.47 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 33.4%.

Sonoco Products Trading Up 1.0%

Shares of SON opened at $53.74 on Thursday. The firm has a market cap of $5.31 billion, a P/E ratio of 5.27, a price-to-earnings-growth ratio of 1.12 and a beta of 0.37. The company has a debt-to-equity ratio of 0.97, a current ratio of 0.96 and a quick ratio of 0.54. Sonoco Products has a 1 year low of $38.65 and a 1 year high of $58.44. The company has a 50 day simple moving average of $51.33 and a two-hundred day simple moving average of $51.47.

Sonoco Products (NYSE:SON - Get Free Report) last released its earnings results on Tuesday, April 21st. The industrial products company reported $1.20 EPS for the quarter, missing the consensus estimate of $1.57 by ($0.37). The company had revenue of $1.68 billion during the quarter, compared to analysts' expectations of $1.88 billion. Sonoco Products had a return on equity of 16.50% and a net margin of 13.57%.Sonoco Products's quarterly revenue was down 1.9% compared to the same quarter last year. During the same period last year, the firm posted $1.38 EPS. Sonoco Products has set its FY 2026 guidance at 5.800-6.200 EPS. On average, equities analysts expect that Sonoco Products will post 5.81 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

SON has been the subject of a number of research analyst reports. Robert W. Baird cut their price objective on Sonoco Products from $60.00 to $55.00 and set a "neutral" rating for the company in a research report on Thursday, April 23rd. Citigroup raised their price target on Sonoco Products from $63.00 to $66.00 and gave the company a "buy" rating in a report on Thursday, July 9th. Wells Fargo & Company reduced their price objective on Sonoco Products from $60.00 to $56.00 and set an "equal weight" rating on the stock in a research note on Friday, March 20th. Argus raised Sonoco Products to a "hold" rating in a report on Monday, April 20th. Finally, Wall Street Zen lowered shares of Sonoco Products from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Five investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, Sonoco Products has an average rating of "Hold" and an average target price of $61.33.

About Sonoco Products

Sonoco Products Company NYSE: SON is a global provider of diversified packaging solutions, serving a wide range of consumer, industrial and retail markets. The company offers a broad portfolio that includes rigid paper and plastic containers, flexible packaging, industrial core and tube products, thermoformed plastics, retail point-of-purchase displays, and packaging supply chain services. Through its solutions, Sonoco helps customers in food and beverage, personal care, chemicals, healthcare, home and garden, and electronics industries address their packaging needs, improve product shelf appeal, and optimize logistics efficiency.

With operations in more than 30 countries across North America, South America, Europe, Asia and Africa, Sonoco leverages a global network of manufacturing facilities, recycling centers and distribution channels to meet the demands of multinational and regional customers.

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