International Paper said on July 11, 2023 that its board of directors had declared a regular quarterly dividend of $0.46 per share ($1.85 annualized). Previously, the company paid $0.46 per share.
Shares must be purchased before the ex-div date of August 14, 2023 to be eligible for the dividend. Shareholders of record as of August 15, 2023 will receive payment on September 15, 2023.
At the current share price of $31.40/share, the dividend yield of the stock is 5.89%.
Looking back five years and taking a sample each week, the average dividend yield was 4.59%, the low 3.18% and the high 7.74%. The standard deviation of returns is 0.81 (n=236).
The current dividend yield is 1.61 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 0.49. The payout ratio tells us how much of a company’s income is paid out as dividends. A payout ratio of one (1.0) means that 100% of the company’s income is paid out as dividends. A payout ratio above one means the company is dipping into its savings to maintain its dividend, which is not a healthy situation. Companies with little growth prospects should pay most of their income in the form of dividends, which generally means a payout ratio between 0.5 and 1.0. Companies with good growth prospects should retain part of their profits in order to invest in these growth prospects, which translates into a payout ratio of zero to 0.5.
The company’s 3-year dividend growth rate is -0.10%.
What is fund sentiment?
There are 1465 funds or institutions reporting positions in International Paper. This is a decrease of 31 owner(s) or 2.07% in the last quarter. Average portfolio weight of all funds dedicated to intellectual property is 0.22%, an increase of 15.80%. The total number of shares held by institutions has increased over the past three months by 1.26% to 329,460,000 shares. 
The put/call ratio for the IP is 0.64, indicating a bullish outlook.
Analyst price forecast suggests 6.48% upside
As of July 5, 2023, the one-year average price target for International Paper was 33.43. The forecast ranges from a low of 24.24 to a high of $44.10. The average price target represents an increase of 6.48% from its last published closing price of 31.40.
Check out our ranking of companies with the biggest upward price target.
International Paper’s projected annual revenue is 21,306 million, an increase of 1.73%. Projected annual non-GAAP EPS is 3.25.
What are the other shareholders doing?
Price T Rowe Associates owns 17,853,000 shares representing 5.14% ownership of the company. In its previous filing, the company said it held 26,149,000 shares, representing a decrease of 46.47%. The company decreases its IP portfolio allocation of 33.84% in the last quarter.
Invesco holds 14,532,000 shares representing 4.19% ownership of the company. In its previous filing, the company stated that it holds 14,151,000 shares, representing a raise of 2.62%. The company increase its IP portfolio allocation by 1.84% in the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares owns 10,842,000 shares representing 3.12% ownership of the company. In its previous filing, the company stated that it holds 10,807,000 shares, representing a raise by 0.32%. The company decreases its IP portfolio allocation of 3.54% in the last quarter.
Greenhaven Associates owns 9,124,000 shares representing 2.63% ownership of the company. In its previous filing, the company said it held 6,365,000 shares, representing a raise of 30.23%. The company increase its IP portfolio allocation of 8.19% in the last quarter.
DVY – iShares Select Dividend ETF holds 8,897,000 shares representing 2.56% ownership of the company. In its previous filing, the company said it held 8,187,000 shares, representing a raise of 7.98%. The company decreases its IP portfolio allocation of 4.80% in the last quarter.
General information on international papers
(This description is provided by the company.)
International Paper is one of the world’s leading producers of packaging, pulp and paper products made from renewable fibers, with manufacturing operations in North America, Latin America, Europe, North Africa and Russia. It manufactures corrugated packaging products that protect and promote goods and enable global trade; pulp for diapers, tissues and other personal hygiene products promoting health and well-being; and items that facilitate education and communication. The company is headquartered in Memphis, Tennessee, employs approximately 48,000 colleagues and serves more than 25,000 customers in 150 countries. Net sales for 2020 were $21 billion.
Further reading:
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.