UPDATE 1-International Paper to buy back $1.5 bln shares, boost dividend

Tue Sep 10, 2013 5:05pm EDT

NEW YORK, Sept 10 (Reuters) - International Paper Co boosted its dividend 17 percent on Tuesday and announced a $1.5 billion stock buyback plan.

The quarterly dividend is being raised to 35 cents from 30 cents, payable on Dec. 16 to shareholders of record as of Nov. 15.

"As our cash generation increased we felt it was appropriate to revisit the dividend," Chief Financial Officer Carol Roberts said in an interview.

The company plans to buy back stock over the next two to three years.

International Paper last raised its dividend in the fourth quarter of 2012.

Shares of Memphis, Tennessee-based International Paper rose 1.7 percent to $50.10 in after-hours trading. The stock is up 24 percent so far this year.

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