Paper and packaging maker International Paper Company ( IP ) on Tuesday raised its quarterly dividend payout for the third time in the past year, this time "above pre-recession levels."
The company said it boosted its payout from 18.75 cents to 26.25 cents per share. The new dividend will be paid on June 15 to shareholders of record as of May 17.
CEO John Faraci commented, "This third dividend increase over the last twelve months raises our dividend above pre-recession levels…This increase reflects our confidence in the future of International Paper and our commitment to return cash to shareholders."
International Paper shares rose 12 cents, or +0.4%, in premarket trading Tuesday.
The Bottom Line
Shares of International Paper ( IP ) will now have a dividend yield, based on the higher dividend payout and last night's closing stock price of $27.60. The stock has technical support in the $24-$26 price area. If the shares can firm up, we see overhead resistance around the $30-$31 price levels.
International Paper Company ( IP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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