15 Best Lumber Stocks To Buy Now

09. Sylvamo Corporation (NYSE:SLVM)

Number of Hedge Fund Holders: 16

Sylvamo Corporation (NYSE:SLVM) produces and markets uncoated freesheet for cutsize, offset paper, and pulp across Latin America, Europe, and North America, operating through segments in these regions.  Recently, Memphis-based Sylvamo Corporation (NYSE:SLVM) completed a series of refinancing actions on July 31, 2024, to extend debt maturity and optimize liquidity. The restructuring included amending existing credit facilities, issuing a new term loan, and redeeming senior notes. The company reduced its revolving credit facility from $450 million to $400 million, extended the maturity to 2029, and rolled $36 million of Term Loan A into a new $235 million Term Loan F-2 Facility due in 2031. Sylvamo also used part of this new loan to redeem $90.1 million of its 7% 2029 Notes. The Accounts Receivable Finance Facility was extended to 2027 and reduced to $110 million.

Sylvamo Corporation (NYSE:SLVM) offers a forward dividend yield of 2.44%, with an annual payout of $1.80 and a payout ratio of 21.70%. This indicates a solid dividend policy, reflecting the company’s ability to distribute a portion of its earnings to shareholders while retaining a majority for reinvestment and operational needs. Year-to-date, Sylvamo Corporation (NYSE:SLVM) stock has performed exceptionally well, delivering a price return of 46.55%, significantly outperforming the S&P 500’s 14.19% increase. This strong performance underscores investor confidence in the company’s strategic financial decisions and overall business stability.

During Q1, 2024 the count of hedge funds holding positions in Sylvamo Corporation (NYSE:SLVM) grew to 16 from 13 in the prior quarter, as reported by Insider Monkey’s database encompassing 920 hedge funds. These holdings collectively amount to around $84.62 million. Chuck Royce’s Royce & Associates emerged as the leading shareholder among these hedge funds during this timeframe.