MEMPHIS, Tenn. - Sylvamo (NYSE: SLVM), known as the world's paper company, has declared a quarterly dividend of $0.45 per share for the fourth quarter of 2024. The dividend will be payable on October 17, 2024, to shareholders who are on record as of October 3, 2024.
The announcement comes as part of the company's regular financial practices. Sylvamo, with its headquarters in Memphis, Tennessee, operates paper mills across Europe, Latin America, and North America. The company is focused on producing paper products essential for various uses, including education, communication, and entertainment.
Sylvamo, which prides itself on being a choice employer, supplier, and investment, reported net sales of $3.7 billion in 2023. The company employs more than 6,500 individuals globally. This dividend declaration reflects Sylvamo's commitment to delivering value to its shareholders and is consistent with its vision.
The information provided is based on a press release statement from Sylvamo.
In other recent news, Sylvamo Corp has reported significant strides in its financial structuring and performance. The company's Q2 earnings topped estimates with adjusted earnings per share of $1.98, surpassing the consensus estimate of $1.58. The revenue for the same period came in at $933 million. Sylvamo's net income for the quarter was $83 million, and the adjusted EBITDA rose to $164 million, representing an 18% margin.
RBC Capital has adjusted its stock price target for Sylvamo, raising it from $63.00 to $71.00, reflecting the company's stable position in the uncoated freesheet market and its prospects for the latter half of the year. The company has also announced a series of refinancing actions, including amendments to existing credit facilities, the issuance of a new term loan, and the redemption of senior notes.
Sylvamo Corp has increased its quarterly dividend from $0.30 to $0.45 per share, marking a 50% rise. This is in line with the company's plans to return at least 40% of its free cash flow to shareholders in 2024. These are among the recent developments that are shaping Sylvamo's financial landscape.
InvestingPro Insights
Sylvamo (NYSE: SLVM), the global paper powerhouse, has not only maintained its commitment to shareholder returns through its recent dividend declaration but also exhibits a robust financial performance. With a market capitalization of approximately $3.07 billion, Sylvamo's strategic operations have yielded a positive outlook from the investment community.
InvestingPro Tips highlight that the company's management has been actively engaged in share buybacks, a sign of confidence in the company's value. Moreover, Sylvamo's valuation suggests a strong free cash flow yield, which is an attractive indicator for investors seeking companies with the potential to generate ample cash after capital expenditures. These insights, along with additional tips available on InvestingPro, such as the company's high return over the last year and predictions of profitability for this year, provide a comprehensive view for potential investors.
From a data perspective, Sylvamo's P/E ratio stands at 14.29, which adjusts to a more appealing 12.34 when looking at the last twelve months as of Q2 2024. This adjustment reflects a more favorable valuation compared to the standard P/E ratio. The company's revenue for the same period is reported at $3.699 billion, with a modest quarterly revenue growth of 1.52%. Furthermore, the dividend yield as of July 2024 is an attractive 2.41%, supported by a significant dividend growth of 80.0% over the last twelve months leading up to Q2 2024.
With a strong return of 89.86% over the past year and trading near its 52-week high, Sylvamo's stock performance has been commendable. This performance is supported by a robust return on assets of 8.45% for the same period. These metrics, coupled with the recent dividend announcement, underscore Sylvamo's dedication to creating value for its shareholders. For those interested in deeper analysis, there are additional InvestingPro Tips available, providing further insights into Sylvamo's financial health and stock performance.
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