Fintel reports that on September 21, 2023, Truist Securities upgraded their outlook for International Paper (NYSE:IP) from Hold to Buy.

Analyst Price Forecast Suggests 0.96% Upside

As of August 30, 2023, the average one-year price target for International Paper is 34.04. The forecasts range from a low of 26.26 to a high of $43.05. The average price target represents an increase of 0.96% from its latest reported closing price of 33.72.

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The projected annual revenue for International Paper is 21,306MM, an increase of 5.28%. The projected annual non-GAAP EPS is 3.25.

International Paper Declares $0.46 Dividend

On July 11, 2023 the company declared a regular quarterly dividend of $0.46 per share ($1.85 annualized). Shareholders of record as of August 15, 2023 received the payment on September 15, 2023. Previously, the company paid $0.46 per share.

At the current share price of $33.72 / share, the stock’s dividend yield is 5.49%.

Looking back five years and taking a sample every week, the average dividend yield has been 4.66%, the lowest has been 3.18%, and the highest has been 7.74%. The standard deviation of yields is 0.80 (n=236).

The current dividend yield is 1.03 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.62. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is -0.10%.

What is the Fund Sentiment?

There are 1381 funds or institutions reporting positions in International Paper. This is a decrease of 100 owner(s) or 6.75% in the last quarter. Average portfolio weight of all funds dedicated to IP is 0.17%, a decrease of 21.83%. Total shares owned by institutions decreased in the last three months by 6.35% to 310,747K shares. The put/call ratio of IP is 0.58, indicating a bullish outlook.

What are Other Shareholders Doing?

Price T Rowe Associates holds 17,023K shares representing 4.92% ownership of the company. In it’s prior filing, the firm reported owning 17,853K shares, representing a decrease of 4.87%. The firm increased its portfolio allocation in IP by 76.65% over the last quarter.

Invesco holds 14,257K shares representing 4.12% ownership of the company. In it’s prior filing, the firm reported owning 14,532K shares, representing a decrease of 1.93%. The firm increased its portfolio allocation in IP by 778.67% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 10,900K shares representing 3.15% ownership of the company. In it’s prior filing, the firm reported owning 10,842K shares, representing an increase of 0.53%. The firm decreased its portfolio allocation in IP by 18.17% over the last quarter.

Greenhaven Associates holds 9,124K shares representing 2.64% ownership of the company. In it’s prior filing, the firm reported owning 6,365K shares, representing an increase of 30.23%. The firm increased its portfolio allocation in IP by 8.19% over the last quarter.

DVY – iShares Select Dividend ETF holds 8,897K shares representing 2.57% ownership of the company. In it’s prior filing, the firm reported owning 8,187K shares, representing an increase of 7.98%. The firm decreased its portfolio allocation in IP by 4.80% over the last quarter.

International Paper Background Information
(This description is provided by the company.)

International Paper is a leading global producer of renewable fiber-based packaging, pulp and paper products with manufacturing operations in North America, Latin America, Europe, North Africa and Russia. It produces corrugated packaging products that protect and promote goods, and enable world-wide commerce; pulp for diapers, tissue and other personal hygiene products that promote health and wellness; and papers that facilitate education and communication. The company is headquartered in Memphis, Tenn., employ approximately 48,000 colleagues and serve more than 25,000 customers in 150 countries. Net sales for 2020 were $21 billion.

This article originally appeared on Fintel

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