International Paper Co (IP) will raise its quarterly dividend by 2.5 percent to $0.5125 per share in the fourth quarter of 2019. Last year the paper packaging company hiked its dividend by 5.3 percent.

This dividend is payable on December 16, 2019, to holders of record at the close of business on November 15, 2019. A new annual rate of $2.05 per share yields 5.0% at a stock price of $41.25.

"This marks our tenth consecutive annual dividend increase and reinforces our policy of a strong and sustainable payout of 40 to 50% of free cash flow as an important part of our capital allocation strategy," said Mark Sutton, Chairman and CEO.

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.