WestRock Company (WRK) will cut its quarterly dividend by 57.0 percent in 2020 because of COVID-19. Last year the company raised its quarterly dividend by 2.2 percent to $0.465 per share, marking the 4th consecutive year of dividend increases by the paper packaging company.

The next dividend will be paid to stockholders on May 28, 2020 to shareholders of record on May 19. A new annual dividend rate of $0.80 per share yields 3.7% at a stock price of $27.

In its press release WestRock reports fiscal 2020 second quarter results and announces the dividend cut as one of the actions to provide additional cash flow available for debt reduction while maintaining its system and making the capital investments necessary to improve productivity and supply its growing markets.

WestRock Company is a multinational provider of paper and packaging solutions for consumer and corrugated packaging markets. The company has operating and business locations in North America, South America, Europe, Asia and Australia. WestRock also sells real estate primarily in the Charleston, SC region. WestRock was formed in 2015 following the merger of RockTenn and MWV. The company has 3 reportable segments: Corrugated Packaging, Consumer Packaging and Land and Development.