Sonoco (SON, Financial) has announced an increase in its quarterly dividend for common stockholders, raising it to 53 cents per share. This enhanced dividend is set to be distributed on June 10 to shareholders who are registered by May 9. As a result, the company’s annual dividend payout will rise to $2.12 per share from the previous $2.08.
The CEO of Sonoco, Howard Coker, emphasized the company's commitment to enhancing long-term profitability and returning capital to shareholders. Over the last two years, Sonoco has generated about $1.7 billion in operating cash flow, which has been strategically allocated toward future growth investments and productivity enhancements.
In light of Sonoco's recent acquisition of Eviosys, the company is also focusing on utilizing its free cash flow to reduce leverage. Despite these efforts, maintaining a robust dividend continues to be a critical component of Sonoco's strategy for value creation.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Sonoco Products Co (SON, Financial) is $56.71 with a high estimate of $65.00 and a low estimate of $48.00. The average target implies an upside of 29.16% from the current price of $43.91. More detailed estimate data can be found on the Sonoco Products Co (SON) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Sonoco Products Co's (SON, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Sonoco Products Co (SON, Financial) in one year is $77.80, suggesting a upside of 77.18% from the current price of $43.91. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Sonoco Products Co (SON) Summary page.
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