HARTSVILLE, S.C. - Sonoco (NYSE: SON), a global packaging company, has announced a quarterly dividend of $0.52 per share, maintaining its long-standing tradition of returning value to shareholders. This dividend is scheduled for payment on September 10, 2024, to shareholders on record as of August 9, 2024.
The recent declaration marks the company's 397th consecutive quarterly dividend since 1925, highlighting its commitment to consistent shareholder returns. Howard Coker, President and Chief Executive Officer of Sonoco, noted that this consistency underscores the company's financial stability and dedication to its investors. The dividend also represents the 41st consecutive year of annualized dividend growth for the company.
With a dividend yield of approximately 3.6 percent based on the closing price of Sonoco's common stock as of July 16, 2024, the company's yield significantly surpasses the average yield of the S&P 500 Index, providing an attractive return to its investors.
Sonoco, with its corporate purpose of "Better Packaging (NYSE:PKG). Better Life.," focuses on creating sustainable packaging solutions and contributing positively to the communities it operates in. The company was recognized as one of America's Most Responsible Companies by Newsweek, reflecting its commitment to corporate responsibility.
With nearly 23,000 employees across more than 300 operations worldwide, Sonoco reported net sales of about $6.8 billion in 2023. The company serves some of the world's most prominent brands, reinforcing its position in the global packaging industry.
This dividend announcement is based on a press release statement from Sonoco and continues to reflect the company's strategic approach to providing shareholder value while pursuing sustainable business practices.
In other recent news, Sonoco Products (NYSE:SON) has been making significant strides in its operations. The packaging company recently announced its acquisition of Eviosys, a leading food can producer in Europe, in a deal valued at approximately $3.9 billion.
Analysts at Citi have highlighted this move, expecting it to boost Sonoco's earnings per share by 25% in 2025. Despite this, they also noted potential concerns, including a 70% higher purchase price than the previous owner, KPS Capital Partners, paid in 2021.
Simultaneously, Sonoco has declared a minimum 6% price increase on its converted paperboard products in the United States and Canada, as well as a $70 per ton price increase for all grades of uncoated recycled paperboard. These adjustments are attributed to the rising costs of raw materials and other inflationary pressures.
The company has also announced the retirement of Jeff Tomaszewski, President of Diversified Businesses, effective June 30, 2024. Despite these changes, Citi analysts have maintained a Buy rating on the stock, adjusting the price target to $64 from $65. These developments reflect Sonoco's ongoing efforts to enhance value for its customers and shareholders.
InvestingPro Insights
Amidst a backdrop of consistent shareholder returns, Sonoco (NYSE: SON) stands out with its impressive dividend track record. An InvestingPro Tip highlights that the company has not only maintained but also raised its dividend for a remarkable 41 consecutive years. This is a testament to Sonoco's robust financial health and its commitment to rewarding shareholders, which is further evidenced by a strong dividend yield of 4.06% as of the latest data.
In addition to its dividend reliability, Sonoco's financial metrics offer a deeper look into the company's valuation and profitability. With a P/E ratio of 13.04, which adjusts to 12.1 for the last twelve months as of Q1 2024, the company presents an attractive valuation compared to industry peers. Furthermore, Sonoco's stock is characterized by low price volatility, as per another InvestingPro Tip, suggesting that it could be a suitable option for investors seeking stability in their portfolio.
For those interested in a comprehensive analysis, Sonoco's profile on InvestingPro includes additional tips, such as the company's strong free cash flow yield and the analysts' profitability predictions for the year. With the use of coupon code PRONEWS24, readers can access these insights and more, receiving up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. Currently, there are 7 additional InvestingPro Tips available for Sonoco, offering valuable perspectives for informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.