International Paper (IP) will hike its quarterly dividend by 5.1 percent to $0.4625 per share in the fourth quarter of 2016. This follows a 10 percent dividend hike by the paper packaging company to 44 cents quarterly last year.

The increased regular dividend is payable on December 15, 2016, to shareholders of record at the close of business on November 15, 2016. The ex-date for this next dividend of 46.25 cents per share is November 10, 2016.

"This dividend increase is IP's fifth-consecutive annual increase and reflects our continued confidence in the sustainability of our cash flow generation," said Mark Sutton, Chairman and CEO of International Paper. "International Paper remains committed to a balanced capital allocation strategy, which includes returning a significant portion of our cash to our shareholders."

International Paper Company is a producer of renewable fiber-based packaging, pulp and paper products. The company’s manufacturing operations are located in North America, Europe, Latin America, Russia, Asia, Africa and the Middle East. IP makes packaging products, pulp for diapers, tissue and other personal hygiene products, paper bags, cups and food containers and papers that facilitate education and communication.