International Paper's Dividend Drawing Attention, Deutsche Bank Reports

As year-end approaches, Deutsche Bank said that it thinks International Paper Company's IP dividend will increasingly draw attention. “At the moment, the market does not appear to be pricing in a dividend hike,” Deutsche Bank writes. “It's a bit surprising. IP has recently reiterated its focus on returning cash to shareholders & said that reappraisal of the dividend will be occurring around yr-end. To our eye, $1/share (on 434MM shares) looks quite sustainable, representing 20-30% of free cashflow. We maintain a Buy rating on the stock based on compelling valuation. International Paper currently trades at $24.84.