Sonoco Products Stock Outperforms Market with Strong Dividend Yield
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Fool
- Strong Stock Performance: Sonoco Products' stock has surged 30% year-to-date, significantly outperforming the Nasdaq's 10.3% and the S&P 500's 8.5%, indicating robust market performance that has drawn increased investor interest.
- Stable Dividend Yield: With a dividend yield of 3.78%, well above the S&P 500 average, and a history of 43 consecutive years of dividend increases, Sonoco is on track to become a Dividend King if it continues this trend for another seven years, enhancing its investment appeal.
- Improved Profitability: Despite a 2% year-over-year decline in sales, Sonoco's earnings per share rose 26% to $0.68, primarily due to an expense reduction plan expected to save $32 million this year and $150 million to $200 million over the next three years, bolstering the company's profitability.
- Successful Business Transformation: Sonoco is shifting focus from industrial to consumer packaging, with consumer sales now comprising 67% of total sales, up from 42% in 2020, which not only increases margins but also reduces business cyclicality, positioning the company for future growth.
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Analyst Views on SON
Wall Street analysts forecast SON stock price to fall
9 Analyst Rating
4 Buy
5 Hold
0 Sell
Moderate Buy
Current: 56.490
Low
47.00
Averages
52.71
High
60.00
Current: 56.490
Low
47.00
Averages
52.71
High
60.00
About SON
Sonoco Products Company is a global designer, developer, and manufacturer of a variety of highly engineered and sustainable packaging serving multiple end markets. Its segments include Consumer Packaging and Industrial Paper Packaging. Products within the Consumer Packaging segment consist of rigid packaging (paper, metal, and plastic), primarily serving the consumer staples market focused on food, beverage, household, personal, and pharmaceutical products. Its rigid paper containers are manufactured from 100% recycled paperboard provided primarily from Sonoco global paper operations. These paper products are primarily used in the food and beverage markets. Products within the Industrial Paper Packaging segment consist primarily of goods produced from recycled fiber, including paperboard tubes, cores, cones and cans; partitions; paper-based protective materials; and uncoated recycled paperboard for high-end applications, such as folding cartons, can board, and laminated structures.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Packaging Industry Faces Challenges and Opportunities Amid Inflation
- Weak Industry Demand: The paper and packaging industry is grappling with declining demand due to inflation and high interest rates, forcing producers to announce downtime and mill closures, which negatively impacts overall revenue performance.
- E-commerce Growth Catalyst: With the rise of e-commerce, the importance of packaging has significantly increased, and the sector is expected to benefit from continued e-commerce growth in the coming years, particularly in the food and beverage markets.
- Rising Demand for Sustainable Packaging: There is a growing consumer preference for eco-friendly packaging materials, prompting companies in the industry to adopt new technologies and innovative products to meet this demand, thereby enhancing their competitive edge.
- Strategic Investments by Companies: Companies like Sonoco, Karat Packaging, and Ranpak Holdings are enhancing their market positions through investments and innovations, with Sonoco targeting $32 million in cost savings for 2026 and Karat reporting a 16.9% year-over-year increase in eco-friendly product sales.
See More
Sonoco Products Stock Outperforms Market with Strong Dividend Yield
- Strong Stock Performance: Sonoco Products' stock has surged 30% year-to-date, significantly outperforming the Nasdaq's 10.3% and the S&P 500's 8.5%, indicating robust market performance that has drawn increased investor interest.
- Stable Dividend Yield: With a dividend yield of 3.78%, well above the S&P 500 average, and a history of 43 consecutive years of dividend increases, Sonoco is on track to become a Dividend King if it continues this trend for another seven years, enhancing its investment appeal.
- Improved Profitability: Despite a 2% year-over-year decline in sales, Sonoco's earnings per share rose 26% to $0.68, primarily due to an expense reduction plan expected to save $32 million this year and $150 million to $200 million over the next three years, bolstering the company's profitability.
- Successful Business Transformation: Sonoco is shifting focus from industrial to consumer packaging, with consumer sales now comprising 67% of total sales, up from 42% in 2020, which not only increases margins but also reduces business cyclicality, positioning the company for future growth.
See More
Sonoco Products Outperforms Major Indices in 2026
- Strong Stock Performance: Sonoco Products has seen a 30% increase in stock price year-to-date, significantly outperforming the Nasdaq's 10.3% and the S&P 500's 8.5%, indicating robust competitiveness in the packaging sector.
- Attractive Dividend Yield: The company offers a dividend yield of 3.78%, well above the S&P 500 average, and has increased its dividend for 43 consecutive years; if it continues for another seven years, it will achieve Dividend King status, further attracting long-term investors.
- Improved Profitability: Despite a 2% year-over-year decline in sales, earnings per share rose by 26% to $0.68, primarily due to an expense reduction plan expected to save $32 million this year and $150 million to $200 million over the next three years.
- Successful Strategic Shift: Sonoco is pivoting from industrial packaging to consumer packaging, with consumer sales now comprising 67% of total sales, up from 42% in 2020, which will help enhance margins and reduce cyclical risks.
See More
Sonoco CFO Acquires Shares, Signaling Confidence
- Share Acquisition Details: Sonoco Products Company's CFO Paul Joachimczyk acquired 8,058 shares on April 24, 2026, for approximately $400,000, increasing his direct holdings by 39.31% from 20,500 to 28,558 shares, indicating strong confidence in the company's future.
- Transaction Price Analysis: The purchase price of $49.64 per share was about 2.5% above the market close of $48.45 on April 24, 2026, and close to the trading price of $50.25 on April 28, suggesting the CFO's endorsement of the current stock valuation.
- Insider Trading Trend: This marks the second significant open-market purchase by Joachimczyk since October 2025, with total net buying reaching 28,558 shares and no sales recorded, reflecting his sustained optimism regarding the company's stock.
- Company Financial Overview: Sonoco Products Company reported $7.49 billion in revenue for 2025, a 42% year-over-year increase, and reduced net debt by 40%, although Q1 sales dipped 2% year-over-year, indicating a robust financial position with expectations for long-term recovery.
See More
EDMP Acquires Sonoco Shares, Increasing Stake to 2.4%
- New Investment Position: On April 28, 2026, EDMP, INC. disclosed a new position by acquiring 53,828 shares of Sonoco Products Company, valued at approximately $2.77 million, indicating the fund's positive outlook on the company.
- Value Appreciation: As of March 31, 2026, the value of the Sonoco position increased to $2.91 million, reflecting a combination of share purchases and price appreciation during the quarter, showcasing the fund's strategic timing.
- Asset Allocation Insight: The Sonoco stake represents 2.4% of EDMP, INC.'s 13F reportable assets under management, indicating a preference for stable dividend-paying stocks, although it falls outside the fund's top five holdings, suggesting a cautious yet interested approach.
- Market Performance Review: Sonoco's stock has returned 13.2% over the past year, underperforming the S&P 500 by 16 percentage points, which may raise concerns among investors regarding its market competitiveness and future growth potential.
See More
Sonoco CFO's Insider Purchase Sparks Interest
- Insider Buying: Sonoco Products Co. CFO Paul Joachimczyk purchased 8,058 shares at $49.64 each on April 24, totaling $399,998.31, indicating strong confidence in the company's future performance.
- Market Reaction: On Wednesday, shares traded as low as $48.93, 1.4% cheaper than the insider purchase price, attracting bargain hunters despite a 1.5% decline in stock price for the day.
- Price Volatility: SON's stock has fluctuated between a 52-week low of $38.65 and a high of $58.44, with the current trading price at $49.25, highlighting potential investment opportunities amid volatility.
- Dividend Yield: Sonoco's annualized dividend stands at $2.16 per share, with an upcoming ex-dividend date of May 8, 2026, offering a 4.3% yield, which provides investors with stable cash flow and long-term investment appeal.
See More
Packaging Industry Faces Challenges and Opportunities Amid Inflation
- Weak Industry Demand: The paper and packaging industry is grappling with declining demand due to inflation and high interest rates, forcing producers to announce downtime and mill closures, which negatively impacts overall revenue performance.
- E-commerce Growth Catalyst: With the rise of e-commerce, the importance of packaging has significantly increased, and the sector is expected to benefit from continued e-commerce growth in the coming years, particularly in the food and beverage markets.
- Rising Demand for Sustainable Packaging: There is a growing consumer preference for eco-friendly packaging materials, prompting companies in the industry to adopt new technologies and innovative products to meet this demand, thereby enhancing their competitive edge.
- Strategic Investments by Companies: Companies like Sonoco, Karat Packaging, and Ranpak Holdings are enhancing their market positions through investments and innovations, with Sonoco targeting $32 million in cost savings for 2026 and Karat reporting a 16.9% year-over-year increase in eco-friendly product sales.
See More
Sonoco Products Stock Outperforms Market with Strong Dividend Yield
- Strong Stock Performance: Sonoco Products' stock has surged 30% year-to-date, significantly outperforming the Nasdaq's 10.3% and the S&P 500's 8.5%, indicating robust market performance that has drawn increased investor interest.
- Stable Dividend Yield: With a dividend yield of 3.78%, well above the S&P 500 average, and a history of 43 consecutive years of dividend increases, Sonoco is on track to become a Dividend King if it continues this trend for another seven years, enhancing its investment appeal.
- Improved Profitability: Despite a 2% year-over-year decline in sales, Sonoco's earnings per share rose 26% to $0.68, primarily due to an expense reduction plan expected to save $32 million this year and $150 million to $200 million over the next three years, bolstering the company's profitability.
- Successful Business Transformation: Sonoco is shifting focus from industrial to consumer packaging, with consumer sales now comprising 67% of total sales, up from 42% in 2020, which not only increases margins but also reduces business cyclicality, positioning the company for future growth.
See More
Sonoco Products Outperforms Major Indices in 2026
- Strong Stock Performance: Sonoco Products has seen a 30% increase in stock price year-to-date, significantly outperforming the Nasdaq's 10.3% and the S&P 500's 8.5%, indicating robust competitiveness in the packaging sector.
- Attractive Dividend Yield: The company offers a dividend yield of 3.78%, well above the S&P 500 average, and has increased its dividend for 43 consecutive years; if it continues for another seven years, it will achieve Dividend King status, further attracting long-term investors.
- Improved Profitability: Despite a 2% year-over-year decline in sales, earnings per share rose by 26% to $0.68, primarily due to an expense reduction plan expected to save $32 million this year and $150 million to $200 million over the next three years.
- Successful Strategic Shift: Sonoco is pivoting from industrial packaging to consumer packaging, with consumer sales now comprising 67% of total sales, up from 42% in 2020, which will help enhance margins and reduce cyclical risks.
See More
Sonoco CFO Acquires Shares, Signaling Confidence
- Share Acquisition Details: Sonoco Products Company's CFO Paul Joachimczyk acquired 8,058 shares on April 24, 2026, for approximately $400,000, increasing his direct holdings by 39.31% from 20,500 to 28,558 shares, indicating strong confidence in the company's future.
- Transaction Price Analysis: The purchase price of $49.64 per share was about 2.5% above the market close of $48.45 on April 24, 2026, and close to the trading price of $50.25 on April 28, suggesting the CFO's endorsement of the current stock valuation.
- Insider Trading Trend: This marks the second significant open-market purchase by Joachimczyk since October 2025, with total net buying reaching 28,558 shares and no sales recorded, reflecting his sustained optimism regarding the company's stock.
- Company Financial Overview: Sonoco Products Company reported $7.49 billion in revenue for 2025, a 42% year-over-year increase, and reduced net debt by 40%, although Q1 sales dipped 2% year-over-year, indicating a robust financial position with expectations for long-term recovery.
See More
EDMP Acquires Sonoco Shares, Increasing Stake to 2.4%
- New Investment Position: On April 28, 2026, EDMP, INC. disclosed a new position by acquiring 53,828 shares of Sonoco Products Company, valued at approximately $2.77 million, indicating the fund's positive outlook on the company.
- Value Appreciation: As of March 31, 2026, the value of the Sonoco position increased to $2.91 million, reflecting a combination of share purchases and price appreciation during the quarter, showcasing the fund's strategic timing.
- Asset Allocation Insight: The Sonoco stake represents 2.4% of EDMP, INC.'s 13F reportable assets under management, indicating a preference for stable dividend-paying stocks, although it falls outside the fund's top five holdings, suggesting a cautious yet interested approach.
- Market Performance Review: Sonoco's stock has returned 13.2% over the past year, underperforming the S&P 500 by 16 percentage points, which may raise concerns among investors regarding its market competitiveness and future growth potential.
See More
Sonoco CFO's Insider Purchase Sparks Interest
- Insider Buying: Sonoco Products Co. CFO Paul Joachimczyk purchased 8,058 shares at $49.64 each on April 24, totaling $399,998.31, indicating strong confidence in the company's future performance.
- Market Reaction: On Wednesday, shares traded as low as $48.93, 1.4% cheaper than the insider purchase price, attracting bargain hunters despite a 1.5% decline in stock price for the day.
- Price Volatility: SON's stock has fluctuated between a 52-week low of $38.65 and a high of $58.44, with the current trading price at $49.25, highlighting potential investment opportunities amid volatility.
- Dividend Yield: Sonoco's annualized dividend stands at $2.16 per share, with an upcoming ex-dividend date of May 8, 2026, offering a 4.3% yield, which provides investors with stable cash flow and long-term investment appeal.
See More
