Sonoco Products hikes dividend by 4.7%

Sonoco Products (SON) will raise its quarterly dividend by 4.7 percent to 45 cents per share in 2021. Last year the company did not announce a dividend hike with a 4.9 percent increase to $0.43 per share in 2019 as the last increase. This 2021 hike just announced marks the 39th consecutive year of dividend increases based on calendar years by the packaging company.

The next dividend will be paid on March 10, 2021, to shareholders of record as of February 24, 2021. Sonoco’s projected annualized dividend of $1.80 per share provides a yield of 3.0% at a stock price of $60.

According to Howard Coker, president and chief executive officer, this is the 383rd consecutive quarter, dating back to 1925, that the Company has paid dividends to shareholders, and is the 38th consecutive year the Company has increased its dividend. Based on the closing price of Sonoco’s common stock on February 9, 2021, the Company’s dividend provides approximately a 3.0 percent yield, which is nearly double the dividend yield of the S&P 500 Index.

“Today’s announced dividend increase further demonstrates Sonoco’s financial strength and illustrates our focus on a balanced capital allocation approach,” Coker said. “We will continue to invest in ourselves to strengthen our core business, while remaining committed to returning value to our shareholders.”

Sonoco Products Company, founded in 1899 as the Southern Novelty Company, is a global provider of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. Sonoco reports its financial results in four reportable segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. The company has paid dividends to shareholders dating back to 1925.