ALPHARETTA, Ga.--(BUSINESS WIRE)--Neenah Paper, Inc. (NYSE:NP) announced today that its Board of Directors approved a 33 percent increase in the regular dividend on the Company's common stock. The annual dividend will increase from $0.60 to $0.80 per share and will continue to be paid in four equal quarterly installments. The first installment at the new rate of $0.20 per share is scheduled to be paid on September 3, 2013 to shareholders of record as of August 16, 2013. This follows the previous 25 percent increase that was effective with the first quarter 2013 dividend.
"Our strategy to grow in higher value performance and image products has resulted in profitable businesses that generate strong cash flows. We are committed to delivering value to our shareholders by returning a portion of these cash flows through a sustainable and attractive dividend," said John O'Donnell, Chief Executive Officer. "Over the past three years we have doubled our dividend as Neenah has grown, and our intent is to increase our dividend yield over the next two to three years from a historic level of around two percent to between three and four percent."
Neenah is a leader in premium image and performance-based products, including filtration, specialized substrates used for tapes, labels and other products, and high-end printing papers. Products are marketed under well-known brands such as CLASSIC®, ASTROBRIGHTS®, ENVIRONMENT®, CRANE®, ROYAL SUNDANCE®, Southworth® KIMDURA®, Gessner®, JET-PRO® SofStretch(TM) and varitess®. Neenah is headquartered in Alpharetta, Georgia and its products are sold in over 70 countries worldwide from manufacturing operations in the United States and Germany. Additional information can be found at the company's web site, www.neenah.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking” statements as defined in Section 27A of the Securities Act of 1933 (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), the Private Securities Litigation Reform Act of 1995 (the “PSLRA”), or in releases made by the Securities and Exchange Commission, all as may be amended from time to time. Statements contained in this press release that are not historical facts, including statements regarding future dividend rates, yields and dates, are be forward-looking statements within the meaning of the PSLRA. Among other things, future dividends are subject to the Company’s compliance with applicable covenants under our debt documents and the sufficiency of funds legally available for the payment of dividends under applicable law. Any such forward-looking statements reflect our beliefs and assumptions and are based on information currently available to us and are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to: (i) changes in prices for pulp, energy, latex and other raw materials, (ii) worldwide economic conditions, (iii) U.S. dollar/euro and other exchange rates, (iv) significant capital and credit market volatility, (v) the availability of raw materials, (vi) unanticipated expenditures related to the cost of compliance with environmental and other governmental regulations, (vii) the ability of the company to realize anticipated cost savings, and (viii) the impact of fluctuations in trading prices for our common stock on dividend yield. These and other factors that could cause or contribute to actual results differing materially from any forward-looking statements are discussed in more detail in our other filings with the Securities and Exchange Commission. Forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. These cautionary statements are being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the “safe harbor” provisions of such laws. Neenah Paper, Inc. cautions investors that any forward-looking statements we make are not guarantees or indicative of future performance