Tuesday, February 3, 2015

Dividend Increase – UPM-Kymmene Corporation

As the frontrunner of the new forest industry UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. We create value from renewable and recyclable materials.

UPM’s structure consists of the following business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper ENA (Europe and North America) and UPM Plywood.

In 2013, UPM's sales exceeded € 10 billion. UPM is present in 65 countries and has production plants in 14 countries. The company employs approximately 21,000 people worldwide. UPM shares are listed on the NASDAQ OMX Helsinki stock exchange. (upm.com)
Today UPM Board of Directors has approved a new dividend policy according to which the company aims to pay an attractive dividend, 30-40% of the company’s annual operating cash flow per share.

In line with the new policy the Board proposes a dividend of EUR 0.70 for 2014 to the company’s Annual General Meeting to be held on 9 April 2015. The proposed dividend represents 30% of the operating cash flow per share in 2014 and is 17% higher than the dividend for 2013.

With current price € 15.90 (today's close), this raise brings their dividend yield to 4.4%. 

Since I own 1100 shares of UPM, this will increase my yearly net dividends by € 81.95.

That increase rises my YOC to 7.03%

Click here to see my portfolio holdings.

You can follow the development of my dividends here.


  1. Hei!
    Kylläpä meidän nyt kelpaa.

    Good luck.

  2. That's good news for you! Didn't know about this company. How is the growth rate?

    1. Hi DivGuy

      UPM is one of my first purchases when I started investing in dividend stocks. UPM's dividend growth has not been worth mentioning in recent years, in the last three years, the dividend remained the same! However, the 3-year growth is 5.27%, a five-year growth rate is 9.24%

      Thanks for stopping by!

  3. Good news for your incomes and to achieve your goals in 2015, congrats!