International Paper will repurchase company's common stock worth $1.5bn over the next 2-3 years.
On Tuesday, International Paper (IP) announced its board of directors has authorized a share repurchase program to acquire up to $1.5bn of the company's common stock. The company said it intended to repurchase these shares over the next 2-3 years in open market repurchase transactions.
According to John Faraci, Chairman and Chief Executive Officer, the authorization of the repurchase program by the BOD reflected "the continued confidence in International Paper's long-term profitability and sustainable free cash flow generation."
The Memphis-based paper and packaging giant IP also announced it was raising the company's quarterly dividend by 17% for the period from 1 October to 31 December 2013. The quarterly dividend is payable on 16 December to shareholders of record as of 15 November.