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Founded in 1898 and headquartered in Memphis, TN, International Paper Co (IP) produces renewable fiber-based packaging and pulp products.

It operates three segments: (1) Industrial Packaging, (2) Global Cellulose Fibers, (3) Corporate and Intersegment.

Three key data points gauge IP or any dividend-paying entity, namely:

(1) Price

(2) Dividends

(3) Returns

Those keys also indicate if any company has made, is making, and will make money.

IP Price

International’s share price fell 35.4% last year from $57.58 to $37.17 per Monday’s market price.

Eleven analysts cover the stock. The median of their eight target prices set a target at $47.16, which is a $9.99 increase.

Historically, however, IP share price grew at a $0.92 average increase per year over the past 15 years.

Therefore, I’m splitting the difference at $5.45 as my upside estimate, which puts the target price at $42.62.

IP Dividends

International Paper has paid variable quarterly dividends since August 1989.

It reduced dividends in 2008-09 but has declared a quarterly dividend of $0.46 for December this year, making a forward-looking annual dividend of $1.84 into the new year.

IP Returns

Putting it all together, a $7.29 estimated gross gain per share shows up when adding IP’s annual $1.84 dividend to my historic-tempered estimated $5.45 annual price gain.

A little over $1000 invested at Monday’s $37.17 share price would buy 27 shares which, multiply the $7.29 estimated gross gain to $196.13 for the coming year.

About 25.25% of that $196 gain comes from an annual $49.50 dividend likely generated from your $1,000 investment.

Furthermore, the $49.50 estimated annual dividend income from $1,000 invested is about 1.33 times greater than the recent $37.17 single-share price.

(A dividend dogcatcher rule is to only buy initial shares of a stock that pay an annual dividend from $1000 invested that is greater than the cost of a single share.

1.33 is greater than 1.

Therefore, you might choose to pounce on IP with its alleged dividend payout of about 1.33 times the single share price.

The exact track of IP’s future share price and dividends will entirely be determined by market action and company finances.

Remember, the best way to track stock performance and dividend payments is through direct ownership of company shares

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