International Paper Announces $2.0 Billion Share Repurchase Program
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International Paper (Memphis, Tenn., USA) on Oct. 9, 2018 announced its board of directors has authorized a share repurchase program to acquire up to $2.0 billion of the company's common stock. The new authorization is in addition to $430 million remaining as of the end of the third quarter from a previous repurchase program. During the third quarter, International Paper (IP) repurchased approximately $200 million in common stock at an average price of $52.03 per share. The company intends to continue repurchasing such shares in open market transactions. IP's board of directors also raised the quarterly common stock dividend by $0.025 per share or 5.3%, which brings the per share dividend to $2.00 annually.
"The repurchase authorization and the dividend increase reflect our continued confidence in International Paper's long-term outlook and strong free cash flow generation," said Mark Sutton, chairman and CEO. "Today's announcement is part of our commitment to return cash to shareholders through systematic share repurchases and a sustainable dividend policy."
The dividend is being increased 5.3% from $0.475 to $0.50 per share for the period from Oct. 1, 2018, to Dec. 31, 2018, inclusive, on the company's common stock, par value $1.00. This dividend is payable on Dec. 14, 2018, to holders of record at the close of business on Nov. 15, 2018. The company's board of directors also declared a regular quarterly dividend of $1.00 per share for the period from Oct. 1, 2018, to Dec. 31, 2018, inclusive, on the cumulative $4.00 preferred stock of the company. This dividend is also payable on Dec. 14, 2018, to holders of record at the close of business on Nov. 15, 2018.
