Daily Stock Analysis: International Paper

white paper on white floor tiles

Source: Unsplash 

The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its nineteenth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we look at a large-cap paper and packaging company named International Paper Co. Its trading ticker symbol is IP. This is my second report on International Paper for Vista. It was also reviewed but not selected for my Volio folio No 5.

International Paper manufactures packaging products and printing papers. It accounts for roughly one-third of the North American corrugated packaging market and about 25% of the uncoated free sheet paper market. 

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

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.

I use three key data points to gauge dividend equities or funds like International Paper Co:

(1) Price

(2) Dividends

(3) Returns

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

IP Price

International's price per share closed at $50.41 yesterday. A year ago its price was $44.54. Price increased $5.87 or a little over 13% last year.

If International's stock trades in the range of $25 to $55 this next year, its recent $50.41 price might rise by $1.59 to reach $52.00 by January 20, 2022. 

IP Dividends

International's most recently declared quarterly dividend was $0.5125 payable on March 15th. Dividends are estimated to total $2.05 per share annually and yield 4.07% at yesterday's $50.41 closing price.

IP Gains?

Adding the $2.05 annual International Paper Co anticipated dividend to my $1.59 optimistic price upside shows a $3.64 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in International Paper Co (IP) at $50.41 per share and we'd buy 20 shares of IP stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us  $0.50 per share.

Subtract that maybe $0.50 brokerage cost from my estimated  $3.64 gross gain per share results in a net gain of $3.14 X 20 shares = $62.60 for a 6.25% net gain on a $1,008.20 investment.

International Paper Co shows a possible 6.25% net gain including a 4.07% dividend yield. It could be more, it could be less.  

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

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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