Highest Paying Dividend Stocks – In Focus IP

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.

Background

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.

Stock Fundamentals

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

Ticker IP
Industry Paper & Paper Products
Price $ 40.22
Market Cap  $ 16,792
Dividend Yield 4.38
Dividend/CFOp 0.284
Equity/Assets 0.136
Average Equity/Assets 0.204
Financial Strength Below Average
Growth Prospects Below Average
Beta 1.38
Price Volatility Above Average
Stock Fundamentals C

(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.

Best Dividend Paying Stocks and More

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.

Advertisements
Highest Paying Dividend Stocks – In Focus IP

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s