Latest news with #SonocoProductsCompany
Yahoo
08-05-2025
- Business
- Yahoo
Sonoco Products (NYSE:SON) Is Paying Out A Larger Dividend Than Last Year
Sonoco Products Company (NYSE:SON) has announced that it will be increasing its periodic dividend on the 10th of June to $0.53, which will be 1.9% higher than last year's comparable payment amount of $0.52. This will take the dividend yield to an attractive 4.7%, providing a nice boost to shareholder returns. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. A big dividend yield for a few years doesn't mean much if it can't be sustained. Prior to this announcement, the company was paying out 252% of what it was earning. Without profits and cash flows increasing, it would be difficult for the company to continue paying the dividend at this level. Analysts expect a massive rise in earnings per share in the next year. Assuming the dividend continues along recent trends, we estimate that the payout ratio could reach 36%, which is in a comfortable range for us. See our latest analysis for Sonoco Products The company has an extended history of paying stable dividends. The annual payment during the last 10 years was $1.28 in 2015, and the most recent fiscal year payment was $2.08. This implies that the company grew its distributions at a yearly rate of about 5.0% over that duration. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend. Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, things aren't all that rosy. Sonoco Products' EPS has fallen by approximately 23% per year during the past five years. Dividend payments are likely to come under some pressure unless EPS can pull out of the nosedive it is in. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this becomes a long term trend. Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. Although they have been consistent in the past, we think the payments are a little high to be sustained. We would probably look elsewhere for an income investment. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. For example, we've identified 4 warning signs for Sonoco Products (2 are concerning!) that you should be aware of before investing. Is Sonoco Products not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
19-04-2025
- Business
- Yahoo
Sonoco Products Company (SON): One of the Low Profile Dividend Champions to Buy
We recently published a list of the 15 Low Profile Dividend Champions to Buy. In this article, we are going to take a look at where Sonoco Products Company (NYSE:SON) stands against other low profile dividend champions. Companies known as Dividend Aristocrats belong to the S&P Index and have raised their dividend payments every year for a minimum of 25 years. On the other hand, Dividend Champions have also maintained at least 25 straight years of dividend growth, though they may not be part of the broader market. It is possible to pursue a strategy that offers both income and growth. Companies that regularly increase their dividends—often referred to as dividend growers—are typically financially sound, well-managed, and of high quality. Over the long term, these businesses not only show lower levels of volatility but also tend to deliver better performance than the broader market, such as the S&P Equal Weight Index. According to a report by Guggenheim, companies that grew and initiated their dividends between May 2005 and December 2024 delivered an annual average return of 10.5%, compared with a 5.5% return of those companies that cut or eliminated their payouts during this period. The broader market produced a 10.4% return on an annual average basis, slightly underperforming the dividend growers. The report also mentioned that dividend growth strategies have generally shown strong performance in both rising and falling markets. For investors, this offers a chance to benefit from long-term market gains while also helping to preserve more value during inevitable market downturns. Dividend-paying stocks provided investors with a degree of stability during the volatile month of March, according to Bank of America, which highlighted several standout names during the market's rough patch. The firm noted that value and dividend-focused stocks performed well that month, as concerns over President Donald Trump's tariff policies unsettled the broader market. The firm's quant strategist, Nigel Tupper, said the following in an April 11 report. 'In March, as global equities fell -4.1% on concerns tariffs could increase and slow growth, the best performing global styles were Value and Dividends,' With investor demand for dividend stocks on the rise, many companies have been steadily increasing their payouts. A report from Janus Henderson revealed that global dividend payments reached an all-time high of $1.75 trillion in 2024, reflecting a 6.6% increase on an underlying basis. The overall headline growth was 5.2%, influenced by fewer one-off special dividends and a stronger US dollar. Out of 49 countries in the index, 17— including major contributors like the US, Canada, France, Japan, and China—set new records for dividend payments. Overall, 88% of companies worldwide either raised their dividends or maintained them throughout the year. Looking ahead, Janus Henderson forecasts that global dividends will rise by 5.0% on a headline basis in the coming year, reaching a new record of $1.83 trillion. Although the stronger US dollar is expected to weigh on headline growth, the underlying growth rate is projected to come in slightly higher, around 5.1%. Aerial view of a factory producing consumer packaging and fiber-based protective packaging. Our Methodology: For this article, we scanned a list of Dividend Champions, which are companies that have raised their payouts for 25 consecutive years or more. From that list, we picked some lesser-known companies with sound financials and strong balance sheets and ranked them according to hedge funds having stakes in them, as per Insider Monkey's database of Q4 2024. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 33 Sonoco Products Company (NYSE:SON) ranks seventh on our Dividend Champions list. The company specializes in the manufacture of industrial and consumer packaging products and services. In 2024, the company strengthened its global position in sustainable metal packaging with the acquisition of Eviosys, a leading European manufacturer of food cans, ends, and closures, completed on December 4, 2024. In addition, it reached an agreement to sell TFP to TOPPAN Holdings, Inc. for approximately $1.8 billion, marking another significant strategic move during the year. In the fourth quarter of 2024, Sonoco Products Company (NYSE:SON) reported revenue of $1.36 billion, down 16.6% from the same period last year. However, its adjusted EBITDA came in at $247 million, showing a 4.6% growth on a YoY basis. In 2024, the company allocated a record $378 million toward growth initiatives and productivity-enhancing projects. Looking ahead, it expects to achieve around 20% growth in adjusted net income attributable to Sonoco in 2025. Though Sonoco Products Company (NYSE:SON)'s revenue did not meet investors' and analysts' expectations, the company's cash position remained encouraging. In FY24, the company's operating cash flow and free cash flow came in at $834 million and $456 million, respectively. It also returned $203 million to shareholders through dividends in 2024, up from $197 million in 2023. On April 16, Sonoco Products Company (NYSE:SON) declared a 1.9% increase in its quarterly dividend to $0.53 per share. This marked the company's 42nd consecutive year of dividend growth. Moreover, it was the 400th consecutive quarter of dividend payments. In addition to dividend growth, the stock also offers an attractive dividend yield of 4.81%, as of April 17. Overall, SON ranks 7th on our list of low profile Dividend Champions to invest in. While we acknowledge the potential of SON as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than SON but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
Sonoco Products Company (SON): Among Mid-Cap Stocks Insiders Were Buying in Q1 2025
We recently published a list of . In this article, we are going to take a look at where Sonoco Products Company (NYSE:SON) stands against other mid-cap stocks insiders were buying in Q1 2025. Stock markets tumbled on Wednesday, with technology shares leading the slide amid growing concerns over ever-changing tariffs. The broader market index dropped 2.2%, the blue-chip companies fell by almost 700 points, a decline of 1.7%, and the Nasdaq Composite —dominated by tech—plunged nearly 3.1%. With this decline, the Nasdaq is now about 19% below its recent peak, edging closer to bear market territory. Stocks dropped to their lowest levels of the day Wednesday after Fed Chair Jerome Powell warned that the tariffs could increase short-term inflation. He noted the Federal Reserve might face a tough situation where its goals of full employment and stable prices may come into conflict, according to CNBC. During periods of market and economic uncertainty, insider trading often draws increased interest. Executive stock purchases can suggest confidence in the company's outlook, while sales may simply reflect personal financial needs or efforts to diversify investments. Many executives use pre-established trading plans, such as 10b5-1 programs, which are designed to remove timing decisions from the equation. To get a clearer picture, insider activity should be evaluated alongside the company's overall financial health and broader market conditions. Today, we're focusing on stocks that have seen heavy insider buying activity in the first quarter of the year. Using Insider Monkey's insider trading screener, we identified companies with market caps between $2 billion and $10 billion, where at least two insiders purchased shares in the past three months. From this list, we ranked the top 20 stocks with the highest value of insider purchases. Most of the stocks that have been recently covered were excluded from our analysis. Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). For each stock, we note the number of insiders who acquired shares in the first quarter and the market capitalizations. Aerial view of a factory producing consumer packaging and fiber-based protective packaging. Market Cap: $4.28 billion Sonoco Products Company designs, manufactures, and sells sustainable packaging products across the U.S., Europe, Canada, and the Asia Pacific. It operates in two segments: Consumer Packaging, which provides rigid paper and plastic containers, and Industrial Paper Packaging, which offers paperboard tubes and protective packaging. The Sonoco, South Carolina-based company serves a variety of industries including food, textiles, and construction. Recently, Sonoco's board of directors increased its quarterly dividend to $0.53 per share, marking the 100th consecutive year of dividend payments. During the first quarter of 2025, three insiders, including the company's CEO, acquired around $2.18 million worth of shares at an average price of $47.05 per share. The CEO, Howard R. Coker, accounted for $1.85 million of the purchase, increasing his holdings to 482,365 shares. Year-to-date, the stock is down 11.12% trading at $43.42 per share. Over the past 12 months, the stock dropped 22.17%. Six analysts rate Sonoco Products stock as a 'Moderate Buy' with a price target of $58.50, suggesting a potential upside of 34.64%, according to MarketBeat. Overall, SON ranks 8th on our list of mid-cap stocks insiders were buying in Q1 2025. While we acknowledge the potential of SON, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SON but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
What Makes Sonoco Products (SON) an Attractive Stock?
Middle Coast Investing, an investment advisor firm, released its first-quarter investor letter. A copy of the letter can be downloaded here. Middle Coast Investing had a difficult but manageable first quarter, but everyone has suffered since the Liberation Day crash at the beginning of the second quarter. To manage the volatility, the firm decided to increase cash goal levels by roughly 5% for each portfolio. In the quarter, the firm sold 3% more than it bought. In Q1 2025, the US Portfolios returned -3.7% compared to -4.6% for the S&P 500. It's Core U.S. portfolios returned -0.7% while Russell 2000 returned -9.8%, S&P 600 returned -9.3% and Nasdaq generated -10.4% for the same period. However, its European Portfolios appreciated by 9.2%. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first quarter 2025 investor letter, Middle Coast Investing emphasized stocks such as Sonoco Products Company (NYSE:SON). Sonoco Products Company (NYSE:SON) engages in the manufacturing of engineered and sustainable packaging products. The one-month return of Sonoco Products Company (NYSE:SON) was -9.01%, and its shares lost 21.08% of their value over the last 52 weeks. On April 15, 2025, Sonoco Products Company (NYSE:SON) stock closed at $44.03 per share with a market capitalization of $4.342 billion. Middle Coast Investing stated the following regarding Sonoco Products Company (NYSE:SON) in its Q1 2025 investor letter: Sonoco Products Company (NYSE:SON) – This is not the oil and gas company (that's Sunoco). Sonoco produces consumer packaging for food and staples products, in both metal and paper, and industrial paper packaging. It is shuffling its business portfolio, acquiring Eviosys in Europe and selling its heat-safe packaging businesses. It is attractive because it should be able to pay off debt, leading to more value for the equity, and because the equity is cheap compared to earnings. This is – or should be – a boring business, levered to the sorts of things we buy in any environment. In that way it's similar to Crown Holdings(CCK), which we also added to this quarter after it had a good report. Crown Holdings is focused on beverages, but similar idea. Aerial view of a factory producing consumer packaging and fiber-based protective packaging. Sonoco Products Company (NYSE:SON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Sonoco Products Company (NYSE:SON) at the end of the fourth quarter which was 29 in the previous quarter. While we acknowledge the potential of Sonoco Products Company (NYSE:SON) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered Sonoco Products Company (NYSE:SON) in another article, where we shared the list of best packaging stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
27-03-2025
- Business
- Yahoo
Sonoco To Implement Price Increase for Core Board and Paperboard in Europe
HARTSVILLE, S.C., March 27, 2025 (GLOBE NEWSWIRE) -- Sonoco Products Company ('Sonoco' or the 'Company') (NYSE: SON), a global leader in high-value sustainable paper and metal packaging, today announced it is implementing a €60 per metric ton price increase for all grades of core board and paperboard in Europe effective with all deliveries from April 7, 2025. According to Adam Wood, Vice President, Industrial Paper Products Europe, the pricing decision is driven by a general shortage of Old Corrugated Containers (OCC), the primary raw material in core board production, and elevated energy costs. 'OCC generation has been low across Europe which has resulted in rising prices in March, and we expect additional increases in April and beyond. This is compounded by OCC exports from Europe that continue to tighten local supply,' Wood said. 'We were hopeful for energy price reductions as we entered spring to help offset the material inflation, but this is not materialising and with gas storage levels low across Europe, the need to replenish reserves over the summer is not likely to support a meaningful reduction. We have held out to support our customers as long as we can but must now pass on these rising costs.' About Sonoco Sonoco (NYSE: SON) is a global leader in high-value sustainable paper and metal packaging that serves some of the world's best-known brands. Sonoco has approximately 28,000 employees working in 315 operations in 40 countries around the world. Guided by our purpose of Better Packaging. Better Life., we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. Sonoco was proudly named one of America's Most Trustworthy and Responsible Companies by Newsweek. For more information on the Company, visit our website at Contact: Roger Schrum 843-339-6018 in to access your portfolio
