International Paper Announces Increase in Quarterly Dividend

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Apr 26, 2010, 06:00 ET

MEMPHIS, Tenn., April 26 /PRNewswire-FirstCall/ -- International Paper (NYSE: IP) announced today that its Board of Directors has approved an increase in its quarterly common stock dividend from two and one-half cents ($0.025) per share to twelve and one-half cents ($0.125) per share, effective for the dividend payable June 15, 2010 to shareholders of record on May 17, 2010.

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"The dividend increase reflects improving global economic conditions, increasing demand for IP's products and our outlook for free cash flow," said John Faraci, Chairman and CEO. "The dividend increase is also an important component of creating value for our shareholders."

Record and Payment Date Information for Second -Quarter Dividend

The company declared a regular quarterly dividend of $0.125 per share for the period from April 1, 2010 to June 30, 2010, inclusive, on its common stock, par value $1. This dividend is payable on June 15, 2010, to holders of record at the close of business on May 17, 2010.

The company also declared a regular quarterly dividend of $1 per share for the period from April 1, 2010 to June 30, 2010, inclusive, on the cumulative $4 preferred stock of the company. This dividend is also payable on June 15, 2010, to holders of record at the close of business on May 17, 2010.

International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs about 56,000 people in more than 20 countries and serves customers worldwide. 2009 net sales were more than $23 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.

This press release contains forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ relate to business and credit market conditions which could cause the Company to maintain this new dividend rate for an extended period of time, or in the future decide to reduce or suspend the dividend. These and other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.

SOURCE International Paper