MEMPHIS, Tenn. - Sylvamo (NYSE: SLVM), known as the world's paper company, announced that its board of directors has declared a quarterly dividend. Shareholders will receive a dividend of $0.45 per share for the first quarter of 2025, which spans from January 1 to March 31. The dividend is scheduled to be paid on January 24, 2025, to shareholders who are on record as of the close of business on January 6, 2025. According to InvestingPro data, the company has consistently raised its dividend for three consecutive years, with the current yield standing at 2.04%.
The declaration of this dividend follows Sylvamo's performance in the previous year, where the company reported net sales of $3.7 billion. With operations across Europe, Latin America, and North America, Sylvamo has positioned itself as a major player in the paper industry. The company employs more than 6,500 people and prides itself on providing papers essential for various aspects of daily life, including education, communication, and entertainment. InvestingPro analysis reveals an impressive 92.47% return over the past year, with a "GREAT" overall financial health score.
Investors in Sylvamo may view this dividend announcement as a sign of the company's financial health and commitment to providing value to its shareholders. Dividends are typically a distribution of profits to shareholders and can reflect a company's confidence in its current and future financial stability.
Sylvamo's headquarters are in Memphis, Tennessee, and it continues to focus on being a competitive employer, supplier, and investment choice in the global market. The information about the dividend is based on a press release statement from Sylvamo.
In other recent news, Sylvamo Corp. has been making notable strides in its financial performance and strategic planning. The company recently regained access to $60 million previously held in escrow, following a favorable court ruling in Brazil. This development is expected to enhance Sylvamo's financial position, with plans to use the funds to reduce debt. BofA Securities has adjusted its stance on Sylvamo, moving its rating from Neutral to Underperform, citing a relative assessment of the company's future performance. Despite the downgrade, Sylvamo reported a robust Q3 performance, with an adjusted EBITDA of $193 million and a free cash flow of $119 million. In line with analyst projections, the company plans to surpass its $110 million savings target from Project Horizon. However, the upcoming closure of the Georgetown mill is expected to result in a $40 million earnings impact. Sylvamo's future plans include investing in high-return projects exceeding $200 million and allocating at least 40% of cash flow to shareholder returns. These are recent developments shaping the outlook of Sylvamo.
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