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International Paper yields 5.5% but free cash flow is negative, raising dividend sustainability concerns.

Market News
31 Oct 2026, 13:47 WIB
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Bearish
International Paper yields 5.5% but free cash flow is negative, raising dividend sustainability concerns.

International Paper offers a 5.54% dividend yield, but its free cash flow turned negative in Q3 2026 due to high capital spending and other costs. The company has not raised its dividend since 2021, but the dividend payments exceed free cash flow, relying on cash reserves and balance sheet resources. Management expects free cash flow to remain low through 2027 with elevated capital spending, making dividend sustainability uncertain. Investors should watch the upcoming Q4 free cash flow results for signs of improvement.

International Paper's stock price is USD 36.37 on Pluang as of Oct 31, 2026, 18:01 WIB, showing a modest 0.94% gain for the day. The dividend yield on Pluang is 4.7%, slightly below the 5.54% mentioned in the news. The company's market cap stands at $19.26 billion, reflecting its significant presence in the basic materials sector.

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