Packaging

Sonoco Board Declares Increase in Common Stock Dividend

Thursday 21. April 2011 - Dividend Raised for the 29th Consecutive Year 2 Million Share Repurchase Program Completed;

Board Increases Authorization to Repurchase 5 Million Shares
The Board of Directors of Sonoco (NYSE: SON) today declared a $.29 per share quarterly common stock dividend, an increase from the previous quarterly dividend of $.28 per share. The dividend will be payable on June 10, 2011, to shareholders of record as of May 13, 2011.
According to Harris E. DeLoach Jr., chairman and chief executive officer, this is the 29th consecutive year Sonoco has increased common stock dividends and the 344th consecutive quarter, dating back to 1925, that the Company has paid dividends to shareholders. If annualized, Sonoco’s new dividend is projected to increase from $1.12 to $1.16 per share, an increase of 3.6 percent.
DeLoach pointed out that Sonoco’s new projected annualized dividend of $1.16 per share provides a yield of approximately 3.2 percent, based on the Company’s closing stock price of $35.17 as of April 18, 2011. Sonoco’s dividend yield is one of the highest provided by U.S. packaging companies and is approximately 70 percent higher than the yield provided by the S&P 500.
In addition, Sonoco announced that it has completed a 2 million share common stock repurchase at a total cost of $69.5 million. Sonoco began to repurchase shares on December 6, 2010, and completed the program on March 25, 2011. Today, Sonoco’s Board of Directors increased its authorization to repurchase up to 5 million shares of common stock from the remaining 3 million share authorization.