LONDON, UK / ACCESSWIRE / March 28, 2018 / Active-Investors has a free review on Domtar Corp. (NYSE: UFS) following the Company's announcement that it will begin trading ex-dividend on March 29, 2018. To capture the dividend payout, investors are required to purchase the stock a day prior to the ex-dividend date, that is by latest at the end of the trading session on March 28, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on UFS:
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Dividend Declared
On February 08, 2018, Domtar's Board of Directors approved a 4.8% increase to its quarterly dividend from $0.415 per share to $0.435 per share on its common stock. The Board declared a dividend payable on April 16, 2018, to stockholders of record as of the close of business on April 02, 2018.
Domtar's indicated dividend represents a yield of 4.15%, which is more than double compared to the average dividend yield of 1.89% for the Consumer Goods sector. The Company has raised dividend for eight years in a row.
Dividend Insight
Domtar has a dividend payout ratio of 58.6%, which his means that the Company spends approximately $0.59 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects the amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Domtar is forecasted to report earnings of $3.48 for the next year, which is double compared to the Company's annualized dividend of $1.74 per share.
For the three months ended December 31, 2017, Domtar's cash flow from operating activities amounted to $125 million and capital expenditures were $71 million, resulting in free cash flow of $54 million. The Company's net debt-to-total capitalization ratio stood at 28% at December 31, 2017 compared to 26% at September 30, 2017. In FY17, Domtar's cash flow from operating activities amounted to $449 million and capital expenditures were $182 million, resulting in free cash flow of $267 million. The Company's balance sheet remains strong, and it is well positioned over the long-term to sustain its dividend distribution.
About Domtar Corp.
Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp, and absorbent hygiene products. With approximately 10,000 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar's annual sales are approximately $5.2 billion, and its executive office is in Fort Mill, South Carolina.
Stock Performance Snapshot
March 27, 2018 - At Tuesday's closing bell, Domtar's stock declined 1.55%, ending the trading session at $42.67.
Volume traded for the day: 736.57 thousand shares, which was above the 3-month average volume of 726.02 thousand shares.
Stock performance in the previous six-month period - up 0.31%; and past twelve-month period - up 15.04%
After yesterday's close, Domtar's market cap was at $2.81 billion.
The stock has a dividend yield of 4.08%.
The stock is part of the Consumer Goods sector, categorized under the Paper & Paper Products industry.
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