International Paper Company (NYSE:IP) is one of those large-cap stocks you buy and put away for the long term. That is, until an activist investor gets involved. I like investing in stocks with catalysts, and as a result, I found International Paper Company (NYSE:IP) compelling back in May, when Loeb laid out his thesis for IP.
The company is the world’s largest paper- and forest-products company, with the leading market share, around 35%, in containerboard manufacturing in the U.S.
Loeb believes that International Paper Company (NYSE:IP)’s de-leveraging, where it has reduced debt by $10 billion over the last four years, should afford it the opportunity to start throwing off some of its robust free cash flow to shareholders. Loeb notes that International Paper Company (NYSE:IP) should generate $2 in free cash flow per share in the near term, supporting a solid dividend boost.