IPInternational Paper CompanyStock — Materials
Yield
5.57%
$1.85 indicated at $33.19
Dividend
$0.4625/qtr
Declared Oct 12, 2026, payable Dec 15, 2026
Payout ratio
n/a
Negative trailing EPS; ~36% of cash flow
Pays
Quarterly
Price ~34% off its 52-week high
House verdict
Cash-covered, but trailing earnings are negative. A $0.4625 quarterly dividend, just declared for Q4 2026, at about 36% of cash flow — but trailing EPS is about −$6.51, so the payout ratio is not meaningful, and the price sits about 34% off its February 2026 high. Part of the 5.57% yield is a falling price, not income strength.
Key risk: Packaging cycles and the DS Smith integration — earnings must recover for the payout to be covered on earnings again.
Changes if: Cash-flow coverage deteriorates or the dividend is cut.
- !Earnings coverage fails Trailing EPS about −$6.51; payout ratio not meaningful.
- ✓Covered by cash flow About 36% of cash flow paid out, per MarketBeat.
- !Price fall behind the yield Price about 34% off the $50.25 February 2026 high.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.