International Paper Co. (IP) is one of several stocks that I initiated a position in during the late 2015-early 2016 stock market slump, and the overall performance of my investment has been really great: a 41% increase in stock price and an average income from dividend payments going forward of about $2.07. My original investment was a little less than $500 including fees. If I wanted to earn the same dividend income today, I would have to invest over $700 now.
Generally speaking, I am happy with IP because of the huge paper profit. One thing about IP disappoints, and that is the dividend increase last fall. In recent years, IP has been in the habit of announcing dividend increases in September or October of each year. Increases in 2012, 2013, 2014, and 2015 were 14%, 17%, 14%, and 10% respectively. When fall 2016 arrived, I was looking forward to a double-digit increase again, but was disappointed by an increase of "only" 5%.
Perhaps it is not the worst thing in the world to see a small increase in the dividend payment last year, for it appears that the 2016 final earnings total will come in at an amount lower than 2015. Since estimates now indicate a more profitable 2017, maybe we can expect a nicer hike this year.
Even though IP's F.A.S.T. Graph is currently slightly outside of the "green zone", I am not really in any hurry to sell it, because if earnings estimates going forward prove correct, the price of IP stock could continue rising quite nicely.
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