Domtar Corp (NYSE:UFS) (TSE:UFS) announced a quarterly dividend on Wednesday, August 8th, Zacks reports. Stockholders of record on Tuesday, October 2nd will be given a dividend of 0.435 per share by the basic materials company on Monday, October 15th. This represents a $1.74 annualized dividend and a dividend yield of 3.26%. The ex-dividend date is Monday, October 1st.

Domtar has increased its dividend payment by an average of 8.5% per year over the last three years and has raised its dividend every year for the last 8 years. Domtar has a payout ratio of 45.3% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Domtar to earn $4.48 per share next year, which means the company should continue to be able to cover its $1.74 annual dividend with an expected future payout ratio of 38.8%.

UFS stock opened at $53.41 on Wednesday. Domtar has a 1-year low of $40.72 and a 1-year high of $54.50. The company has a market capitalization of $3.38 billion, a PE ratio of 16.82, a P/E/G ratio of 2.80 and a beta of 1.65. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.31 and a current ratio of 2.31.

Domtar (NYSE:UFS) (TSE:UFS) last released its quarterly earnings data on Wednesday, August 1st. The basic materials company reported $0.65 earnings per share for the quarter, missing the consensus estimate of $0.77 by ($0.12). Domtar had a negative net margin of 3.25% and a positive return on equity of 7.79%. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.32 billion. During the same quarter in the prior year, the company posted $0.61 earnings per share. The company’s revenue for the quarter was up 10.5% on a year-over-year basis. analysts forecast that Domtar will post 3.84 earnings per share for the current year.

Several equities research analysts have recently weighed in on UFS shares. Citigroup upped their price objective on Domtar from $41.00 to $44.00 and gave the company a “sell” rating in a research note on Tuesday, July 10th. TheStreet downgraded Domtar from a “b-” rating to a “c+” rating in a report on Monday, July 9th. National Bank Financial boosted their target price on Domtar from $45.00 to $48.00 and gave the stock a “sector perform” rating in a report on Monday, July 30th. KeyCorp raised Domtar from an “underweight” rating to a “sector weight” rating in a report on Wednesday, August 1st. Finally, Royal Bank of Canada boosted their target price on Domtar from $52.00 to $54.00 and gave the stock an “outperform” rating in a report on Thursday, August 2nd. Thirteen equities research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus target price of $47.21.

Domtar Company Profile

Domtar Corporation designs, manufactures, markets, and distributes various communication papers, specialty and packaging papers, and absorbent hygiene products in the United States, Canada, Europe, Asia, and internationally. It operates in two segments, Pulp and Paper, and Personal Care. The company offers business papers, including copy and electronic imaging papers for use with inkjet and laser printers, photocopiers, and plain-paper fax machines, as well as computer papers, preprinted forms, and digital papers for office and home use.

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Dividend History for Domtar (NYSE:UFS)

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