Quick Read – Sonoco Products (NYSE: SON) has raised its dividend for 43 consecutive years and yields over 4% at just 9x forward earnings. – Sonoco slashed net debt by 40% in FY2025 via divestitures, though an elevated 3.0x Net Debt/EBITDA remains the primary threat to its…
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When rate-cut timing is murky and equity volatility spikes, retirees need cash-generative anchors. Sonoco Products (NYSE:SON) is one of the most boring, most dependable income stocks on the board. The South Carolina packaging maker just authorized its 43rd consecutive annual dividend increase and has paid dividends without interruption for more than 100 years.
The question I am answering today: is the yield as bulletproof as the streak suggests? Dividend Snapshot Payout Ratios Leave Plenty of Room FY2025 EPS came in at $5.71 against a $2.12 annual payout, which is a comfortable earnings payout ratio. On the cash side, Sonoco paid roughly $210M in dividends (98.87M shares x $2.12) against $392.7M of free cash flow.