Sonoco Products Company (NYSE:SON) Announces Dividend Increase - $0.54 Per Share

Key Points

• Sonoco raised its quarterly dividend to $0.54 per share, a 1.9% increase from $0.53, implying a 3.9% yield; shareholders of record on May 8 will be paid on June 10 (ex-dividend date May 8).
• Dividend looks sustainable with a current payout ratio of 32.6% and analysts forecasting $6.85 EPS next year (projected payout ~30.9%); Sonoco also beat the last quarter's EPS estimate ($1.05 vs. $1.01) and reported revenue up 29.7% year‑over‑year.
• Valuation and ownership note: SON trades around $55 with a P/E of 5.48 and market cap ≈$5.45B, insiders own ~0.98% (recent small insider sale) while institutional investors hold about 77.7% of the shares.

Sonoco Products Company (NYSE:SON - Get Free Report) announced a quarterly dividend on Wednesday, April 15th. Investors of record on Friday, May 8th will be paid a dividend of 0.54 per share by the industrial products company on Wednesday, June 10th. This represents a c) annualized dividend and a yield of 3.9%. The ex-dividend date of this dividend is Friday, May 8th. This is a 1.9% increase from Sonoco Products's previous quarterly dividend of $0.53.

Sonoco Products has increased its dividend by an average of 0.0%per year over the last three years and has increased its dividend annually for the last 3 consecutive years. Sonoco Products has a payout ratio of 32.6% meaning its dividend is sufficiently covered by earnings. Analysts expect Sonoco Products to earn $6.85 per share next year, which means the company should continue to be able to cover its $2.12 annual dividend with an expected future payout ratio of 30.9%.

Sonoco Products Stock Up 0.5%

Shares of NYSE SON opened at $55.15 on Thursday. Sonoco Products has a 12-month low of $38.65 and a 12-month high of $58.44. The stock has a market cap of $5.45 billion, a PE ratio of 5.48, a P/E/G ratio of 1.09 and a beta of 0.50. The company has a current ratio of 1.05, a quick ratio of 0.60 and a debt-to-equity ratio of 1.04. The company has a 50-day moving average of $53.99 and a 200 day moving average of $46.95.

Sonoco Products (NYSE:SON - Get Free Report) last announced its quarterly earnings data on Tuesday, February 17th. The industrial products company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.01 by $0.04. Sonoco Products had a net margin of 13.34% and a return on equity of 18.52%. The company had revenue of $1.77 billion during the quarter, compared to analysts' expectations of $1.76 billion. During the same quarter in the prior year, the company earned $1.17 EPS. Sonoco Products's revenue was up 29.7% compared to the same quarter last year. As a group, sell-side analysts predict that Sonoco Products will post 6.1 EPS for the current fiscal year.

Insider Buying and Selling at Sonoco Products

In related news, insider Ernest D. Haynes III sold 1,581 shares of the stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $56.39, for a total transaction of $89,152.59. Following the completion of the transaction, the insider owned 9,377 shares of the company's stock, valued at approximately $528,769.03. This trade represents a 14.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.98% of the company's stock.

Institutional Investors Weigh In On Sonoco Products

Hedge funds have recently added to or reduced their stakes in the business. Powell Investment Advisors LLC boosted its position in shares of Sonoco Products by 1.0% during the 4th quarter. Powell Investment Advisors LLC now owns 20,718 shares of the industrial products company's stock valued at $904,000 after purchasing an additional 203 shares in the last quarter. IFP Advisors Inc boosted its position in shares of Sonoco Products by 8.6% during the 4th quarter. IFP Advisors Inc now owns 2,996 shares of the industrial products company's stock valued at $131,000 after purchasing an additional 237 shares in the last quarter. SBI Securities Co. Ltd. boosted its position in shares of Sonoco Products by 77.7% during the 4th quarter. SBI Securities Co. Ltd. now owns 590 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 258 shares in the last quarter. Hsbc Holdings PLC boosted its position in shares of Sonoco Products by 5.2% during the 4th quarter. Hsbc Holdings PLC now owns 6,073 shares of the industrial products company's stock valued at $265,000 after purchasing an additional 299 shares in the last quarter. Finally, CIBC Private Wealth Group LLC boosted its position in shares of Sonoco Products by 5.3% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 6,006 shares of the industrial products company's stock valued at $259,000 after purchasing an additional 304 shares in the last quarter. 77.69% of the stock is currently owned by institutional investors and hedge funds.

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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