Why International Paper (IP) Remains a Top Choice for Materials Dividends in 2025

International Paper Company (NYSE:IP) is included among the 13 Best Materials Dividend Stocks to Buy Right Now.

International Paper Company (NYSE:IP) produces a wide range of paper and packaging products and also makes cellulose fibers, which are essential in products such as diapers, baby wipes, and feminine hygiene items.

For investors, International Paper Company (NYSE:IP) offers a relatively stable source of income, making it appealing to those who prefer steady, low-volatility investments. Around 54% of its sales come from processed food and beverage (34%) and fresh food (20%) markets. An additional 18% comes from the growing e-commerce and logistics sector, with the remaining revenue generated from durable and non-durable goods.

International Paper Company (NYSE:IP)’s management expects to generate between $2 billion and $2.5 billion in free cash flow by 2027 and intends to return 40% to 50% of that amount to shareholders through dividends. Based on the midpoint of these estimates, projected cash dividends in 2027 would total around $1.01 billion, a notable increase from the $643 million distributed in 2024.

International Paper Company (NYSE:IP) has paid uninterrupted dividends since 1986. The company currently offers a quarterly dividend of $0.4625 per share and has a dividend yield of 3.40%, as of July 29.

While we acknowledge the potential of IP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.