MEMPHIS, Tenn., Sept. 10 , 2013 /PRNewswire/ -- International Paper (NYSE: IP) today announced its board of directors has authorized a share repurchase program to acquire up to $1.5 billion of the company's common stock. The company intends to repurchase such shares over the next 2-3 years in open market repurchase transactions. Also today, the company announced its board of directors is raising the company's quarterly dividend by 17%.
"The authorization of this repurchase program and the dividend increase reflect our continued confidence in International Paper's long-term profitability and sustainable free cash flow generation," said John Faraci, Chairman and Chief Executive Officer. "International Paper continues to be committed to a balanced use of cash in a way that maximizes value to our shareowners."
The dividend is being increased 17% from $0.30 to $0.35 per share for the period from October 1, 2013, to December 31, 2013, inclusive, on the company's common stock, par value $1.00. This dividend is payable on December 16, 2013, to holders of record at the close of business on November 15, 2013. The company's board of directors also declared a regular quarterly dividend of $1.00 per share for the period from October 1, 2013, to December 31, 2013, inclusive, on the cumulative $4.00 preferred stock of the company. This dividend is also payable on December 16, 2013, to holders of record at the close of business on November 15, 2013.About International Paper International Paper (NYSE: IP) is a global leader in packaging and paper with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include industrial and consumer packaging and uncoated papers, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs approximately 70,000 people and is strategically located in more than 24 countries serving customers worldwide. International Paper net sales for 2012 were $28 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com. Repurchases of the company's common stock may be made from time to time in open market transactions (including block trades), privately negotiated transactions or otherwise. The timing, manner, price and amount of repurchases will be determined by the company in its discretion based on factors including the market price of the company's common stock, general economic and market conditions and applicable legal requirements. The repurchase program may be commenced, suspended or discontinued at any time.