It is easy to see that International Paper is one of the highest paying dividend stocks available. But a more important issue is whether it is one of the best dividend paying stocks available. We will give our opinion in this report.
International Paper (IP) is an international paper and packaging company with markets in North American, Latin America, Europe, Africa, Russia, the Middle East, and Asia. The company operates in three segments, printing papers, consumer packaging, and industrial packaging. IP is a Memphis-based firm and it is one of the oldest (founded in 1898) and largest publicly traded firms in the marketplace.
IP cut its dividend by 90 percent early in 2009 because it was struggling with a heavy debt burden. It has raised it steadily since, but its debt burden (or at least its liability burden) has not improved much. In fact, its equity-to-asset ratio has dipped below its long-term average.
Furthermore, International Paper’s sales have been anemic over the last business cycle (roughly 7 – 8 years), and they do not promise to be much better over the next 7 – 8 years.
International Paper’s main saving grace is that it is a huge company and it is operating in many markets. It has had consistently positive cash flows from operations and mostly positive free cash flows. Its current dividend looks well covered by its cash flows from operations.
Still, we are not high on this company. We do not consider it one of our best monthly dividend stocks. And it earns a “C” (“C” means average) rating for its stock fundamentals.
Stat Sheet – International Paper 4/8/16
|Industry||Paper & Paper Products|
|Market Cap||$ 16,792|
|Financial Strength||Below Average|
|Growth Prospects||Below Average|
|Price Volatility||Above Average|
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016)
If you would like to see some of the stocks we are high on and some of the stocks we do consider our top dividend paying stocks, click the link below.
Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.