International Paper Announces $2.0 Billion Share Repurchase Program
October 11, 2018
MEMPHIS (News release) -- International Paper 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 the company 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. The company'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 Chief Executive Officer. "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 October 1, 2018, to December 31, 2018, inclusive, on the company's common stock, par value $1.00. This dividend is payable on December 14, 2018, to holders of record at the close of business on November 15, 2018. The company's board of directors also declared a regular quarterly dividend of $1.00 per share for the period from October 1, 2018, to December 31, 2018, inclusive, on the cumulative $4.00 preferred stock of the company. This dividend is also payable on December 14, 2018, to holders of record at the close of business on November 15, 2018.