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International Paper (IP) manufactures packaging products and cellulose fibers. It accounts for roughly one-third of the North American corrugated packaging market.

Though it has operations in Brazil, India, and China, more than three-fourths of its sales come from North America.

International Paper serves a variety of end markets, including industrial, consumer products, and manufacturing.

It sells its products directly to end users and converters, as well as through agents, resellers, and distributors.

The company was founded in 1898 and is headquartered in Memphis, Tennessee.

Three key data points gauge IP or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys also best tell whether any company has made, is making, and will make money.

IP Price

Over the past year, IP share price increased about 34% from $31.80 to $42.54 as of Tuesday’s market close.

If IP shares trade in the range of $25.00 to $55.00 this next year, its recent $42.54 share price might rise to $45.60 by next year. Of course, the IP price could also drop about the same $3.06 estimated amount or more.

My $3.06 upside estimate is near the median of 1-year target estimates from 8 analysts tracking IP for brokers.

IP Dividend

International Paper has paid variable Quarterly dividends since March 1986.

IP’s most recent Q dividend of $0.4625 was declared May 14th  for shareholders of record May 23rd and the dividend was paid June 14th.

A forward-looking $1.85 annual dividend yields 4.35% at Tuesday’s closing share price.

IP Returns

To put it all together, add the IP projected annual dividend of $1.85 to the estimated price upside of $3.06 to get a $4.91 estimated gross gain per share for the coming year.

At Tuesday’s $42.54 share price, a little over $1000 would buy 24 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, could cost us about $0.42 per share.

Subtracting that likely $0.42 brokerage cost from the $4.91 estimated gross gain reveals a net gain of $4.49 X 24 shares = $107.76 for about a 10.50% estimated net gain on the year.

Furthermore, the $43.50 annual dividend income from $1K invested is almost $3.06 greater than the $42.54 single share price. By these numbers, IP is an ideal dividend dog.

You might choose to pounce on International Paper Co. It is a 126-year-old dividend-paying Tennessee-based cellulose products firm that has a 38-year track record paying quarterly variable dividends.

The exact track of International Paper's future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.

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