Hewlett-Packard Company (HPQ): Is It Worth Investing in Paper?

Despite the decline in profit last year, the board decided at the end of 2012 to raise the company’s dividend payment by 14%. International Paper has raised its dividend payment four times in the past three years. This might be one of the features that makes investing in paper worth considering. Currently, the company’s annual dividend yield is nearly 2.7%.

Final thoughts

Perhaps The Office didn’t mislead me after all. The decline in revenue for leading printer companies and the low profit margin of a leading paper company might make these companies less attractive investments. But these companies still have something to offer to their investors: dividend yields of around 2.6% to 2.7%.

If these companies will again raise their dividend payments, it could further draw investors toward this industry. Finally, I think that a paper company such as International Paper might be considered as a risk-averse investment that will maintain its low profit margin and low (but steady) growth in revenue.

The article Is It Worth Investing in Paper? originally appeared on Fool.com.

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