International Paper Co (IP) will raise its quarterly dividend by 5.3 percent to $0.50 per share. Last year the paper packaging company raised its quarterly dividend from 46.25 cents to 47.5 cents per share.

The increased dividend is payable on December 14, 2018, to holders of record at the close of business on November 15, 2018. The ex-date for this next dividend of 50 cents per share is November 14, 2018.

A new annual dividend of $2.00 per share for International Paper yields 4.6% at a stock price of $43.53. The company also announced a $2.0 billion share repurchase program.

"The repurchase authorization and the dividend increase reflect our continued confidence in International Paper's long-term outlook and strong free cash flow generation," said Mark Sutton, Chairman and Chief Executive Officer. "Today's announcement is part of our commitment to return cash to shareholders through systematic share repurchases and a sustainable dividend policy."

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.