MEMPHIS - Sylvamo (NYSE:SLVM), a global paper company, has announced an increase in its quarterly dividend from $0.30 to $0.45 per share, marking a 50% rise. This dividend is applicable for the period starting July 1, 2024, and ending on September 30, 2024. The company's board of directors approved the increased dividend to be paid out on July 29, 2024, to shareholders who are on record as of July 8, 2024.
Jean-Michel Ribieras, the chairman and chief executive officer of Sylvamo, expressed satisfaction with the board's decision to raise the dividend, noting that it represents the third such increase in the past two years. He emphasized the company's commitment to delivering value to its shareholders and confidence in its future prospects.
Sylvamo, which brands itself as the world's paper company, operates mills across Europe, Latin America, and North America. The company focuses on producing paper for various uses such as education, communication, and entertainment. With a workforce exceeding 6,500 employees, Sylvamo reported net sales of $3.7 billion for the year 2023.
The company has cautioned that the forward-looking statements in the news release, including statements about its future actions and results, could differ materially from current expectations due to various risks and uncertainties.
The information in this article is based on a press release statement from Sylvamo.
InvestingPro Insights
Amid the recent announcement of Sylvamo's (NYSE:SLVM) enhanced dividend, the company's financial health and market performance provide a broader context for investors. According to InvestingPro data, Sylvamo has a market capitalization of $2.89 billion, underscoring its significant presence in the paper industry.
The company's P/E ratio stands at 14.85, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 13.03, suggesting that the stock may be valued attractively relative to its earnings.
InvestingPro Tips highlight several key aspects that may interest shareholders and potential investors. Sylvamo has been observed to have a high shareholder yield, which is further reflected in the company's recent dividend increase.
Moreover, the company's management has been actively buying back shares, a sign of confidence in Sylvamo's value and future prospects. With two analysts revising their earnings upwards for the upcoming period, investor sentiment seems to be positive.
Investors looking to delve deeper into Sylvamo's financials and market performance can find additional insights on InvestingPro. For instance, there are 13 more InvestingPro Tips available, which could provide a more nuanced understanding of the company's potential. As a special offer, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to these valuable insights.
Lastly, the company's commitment to shareholder returns is evident not just in the dividend increase, but also in its significant price total return over the last year, which stands at 74.19%. Sylvamo's stock is also trading near its 52-week high, at 98.09% of the peak price, reflecting strong market performance. These metrics, coupled with Sylvamo's strategic focus on its core paper business, paint a picture of a company that's both rewarding its shareholders and working towards sustained growth.
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