Stock Analysis

Sonoco's Century-Long Dividend Streak: Enduring Value or Missed Reinvention? (SON)

  • Sonoco Products Company recently declared a US$0.53 per share quarterly dividend, payable on December 10, 2025, marking its 402nd consecutive quarterly payout to shareholders of record as of November 10, 2025.
  • This milestone marks Sonoco's 100th consecutive year of dividend payments and 42nd straight year of annualized dividend increases, reflecting an unusually high dividend yield relative to the S&P 500 Index.
  • We'll explore how Sonoco's century-long dividend track record reinforces its investment narrative of resilience and long-term shareholder value.

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Sonoco Products Investment Narrative Recap

To be a shareholder in Sonoco Products, you have to believe in the company's ability to adapt to global packaging trends, deliver sustainable growth, and realize operational efficiencies from recent acquisitions. The declared US$0.53 dividend and century-long payout streak reinforce Sonoco’s resilience, but this announcement does not materially affect the central catalyst, realizing procurement and cost synergies, or lessen the ongoing risks tied to macroeconomic pressures and integration of SMP EMEA.

Sonoco’s 100th consecutive year of dividend payments stands out, especially with the current yield of 5.35%, which more than doubles the S&P 500 Index average. This milestone coincided with recent analyst commentary updating price targets and outlooks, adding context to the company's position as it seeks to deliver on promised synergies amid revenue and margin challenges.

Yet, despite this history, investors should not overlook the heightened financial risk if key synergy targets from recent acquisitions aren’t met by 2026, especially as ...

Read the full narrative on Sonoco Products (it's free!)

Sonoco Products is projected to reach $8.3 billion in revenue and $584.7 million in earnings by 2028. This outlook is based on an assumed annual revenue growth rate of 9.5% and represents a $491.6 million increase in earnings from the current $93.1 million.

Uncover how Sonoco Products' forecasts yield a $56.20 fair value, a 40% upside to its current price.

Exploring Other Perspectives

SON Community Fair Values as at Oct 2025
SON Community Fair Values as at Oct 2025

Three members of the Simply Wall St Community place Sonoco’s fair value between US$56.20 and US$112.75, reflecting strongly varied expectations. While opinions differ, the biggest challenge remains Sonoco’s pursuit of cost synergy targets, which may shape outcomes for shareholders over the next year.

Explore 3 other fair value estimates on Sonoco Products - why the stock might be worth over 2x more than the current price!

Build Your Own Sonoco Products Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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About NYSE:SON

Sonoco Products

Designs, develops, manufactures, and sells various engineered and sustainable packaging products in the United States, Europe, Canada, the Asia Pacific, and internationally.

Average dividend payer with slight risk.

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