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MEMPHIS - Sylvamo (NYSE:SLVM), a global paper company, announced Monday its board of directors has declared a quarterly dividend of $0.45 per share for the fourth quarter of 2025. The dividend will be payable on October 17 to shareholders of record as of October 3. The company currently offers a 4.16% dividend yield and has consistently raised its dividend for three consecutive years, according to InvestingPro data.
In addition to the dividend announcement, the company’s board authorized a new $150 million share repurchase program. This marks Sylvamo’s third buyback program since 2022, with the company having recently exhausted its previous $150 million authorization announced in September 2023. The stock currently trades at an attractive P/E ratio of 7.7x with a substantial free cash flow yield of 11%, based on InvestingPro analysis.
"This new share repurchase authorization reflects our confidence in Sylvamo’s long-term strategy and financial strength," said Jean-Michel Ribiéras, chairman and chief executive officer, in the press release.
The company reported it has repurchased $82 million worth of shares so far this year. According to the announcement, the new repurchase program has no termination date and does not obligate the company to buy back shares, with actual repurchases subject to market conditions and other factors.
Sylvamo, which describes itself as "the world’s paper company," operates mills across Europe, Latin America and North America. Headquartered in Memphis, Tennessee, the company employs over 6,500 people and reported net sales of $3.8 billion for 2024.
The paper manufacturer’s stock repurchase program is part of what the company called its disciplined capital allocation strategy, which includes repurchasing shares when they are deemed to be trading below their intrinsic value.
In other recent news, Sylvamo Corporation reported its second-quarter 2025 earnings, which showed a significant shortfall in both earnings per share (EPS) and revenue compared to forecasts. The adjusted EPS was $0.37, below the expected $0.48, and revenue reached $794 million, missing the forecasted $831.74 million. This earnings miss was followed by a sharp decline in the company’s stock. Additionally, Sylvamo’s third-quarter guidance for Adjusted EBITDA was projected at $145-165 million, falling short of the consensus estimate of $191.2 million, prompting RBC Capital to lower its price target to $49 while maintaining a Sector Perform rating. BofA Securities also reduced its price target for Sylvamo to $44 due to challenges in the paper and pulp sector and broader economic headwinds, maintaining an Underperform rating. These developments come amidst the announcement of Stan Askren’s resignation from Sylvamo’s board of directors for health reasons, effective September 1, 2025. The company confirmed that Askren’s departure was not due to any disagreements with Sylvamo.
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