International Paper Co, known by the ticker symbol IP, is a large cap Paper and Packaging Company in the materials business sector. This is my first report on IP for my Viital stock portfolio. I have not reviewed International Paper since  January 20 when I selected it as my twentieth pick for my  Vista portfolio (the 6th of seven so-far).

Photo by @shawnanggg on Unsplash

International Paper 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, Russia, 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 communication services.

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

International Paper Company was founded in 1898 and is headquartered in Memphis, Tennessee.

Three key data points gauge any dividend equity or fund such as International Paper Co (IP):

(1) Price

(2) Dividends

(3) Returns

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

IP Price

International's price per share was $45.85 as of yesterday's market close. One year ago its price was $48.01. Thus, International's share price fell 4.5% in the past year.

If International's stock trades in the range of $40.00 to $60.00 this next year, its recent $45.85 share price might rise by $9.15 to reach $55.00 by December 14, 2022. My estimate is $0.71 under the median of 14 target estimates from analysts covering International Paper Co for brokerages.

IP Dividends

International's most recent quarterly dividend of  $0.4625  pays out tomorrow, December 15th, to shareholders of record November 21st. That dividend equates to $1.85 annually and yields 4.03% per yesterday's $45.85 closing price. 

International Paper Co (IP) had paid quarterly dividends increasing generally annually since 2009 up to the previous Q dividend of $0.51 paid September 15th. The current $.4625 dividend has not been seen since 2017.

IP Returns

Adding the $1.85 annual estimated International Paper Co forward-looking dividend to my $9.15 price upside estimate shows a $11.00 potential gross gain, per share, to be reduced by any costs to trade IP shares.  

At yesterday's $45.85 price per share, a little over $1000 would buy 22 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.45 per share.

Subtract that maybe $0.45 brokerage cost from my estimated $11.00 gross gain per share results in a net gain of $10.55 X 22 shares = $232.10 for a 23.2% net gain on a $1,008.48  investment.

So it is that International Paper Co (IP)  shows a possible 23.2% net gain including a 4.03% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in International Paper Co could generate $40.30 in cash dividends alone. Note that a single share of IP stock bought at yesterday's closing price was $45.85. Therefore, International Paper Co. share price is $5.55 more than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is not a prime time to pickup International Paper Co (IP)  shares. The estimated next-year dividend from $1K invested is $5.55 less than IP's single share price. Consider yourself alerted. It's a sign!  Set your share buy price at $42.00.

All of the estimates above are speculation based on the past history of International Paper Co (IP). Only time and money invested in this stock will determine its market value.